China said Wednesday it will retaliate against the latest round of U.S. tariffs on Chinese imports.
The Chinese Ministry of Commerce announced a 25 percent charge on $16 billion worth of U.S. goods. The 333 goods being targeted by China include vehicles such as large passenger cars and motorcycles. Various fuels are on the list, as well as fiber optical cables.
Read: China ‘shocked’ by US actions in trade dispute
China is also going after coal, grease, Vaseline, asphalt and plastic products, and recyclables.
China’s announcement comes after the U.S. Trade Representative’s office released a finalized list of $16 billion worth in Chinese goods that will be hit with tariffs. The U.S. charges will take effect on Aug. 23. The latest U.S. list brings the total worth of Chinese goods facing a 25 percent tariff to $50 billion.
“This is tit-for-tat exactly,” said Art Hogan, chief market strategist at B. Riley FBR. “Our $16 billion comes at a scheduled time, which comes up on the 23rd. China said we see your $16 billion and we’ll match your $16 billion.”
“They’ll pretty much match what we do until they have no more levers to pull. The bad news is the trade war fears in China are escalating. The major concern right now in trade is China,” Hogan said.
Tensions between the U.S. and China have been simmering in recent months as the Trump administration takes a more protectionist stance when it comes to trade.
Just last month, tariffs on $34 billion worth of goods Chinese goods came into effect. Chinese state media has hit back at the U.S. in light of the levies that have been threatened, saying the Asian nation would retaliate.
Read: Trump ‘ready’ to tax all Chinese imports
On July 25, President Donald Trump said China is “being vicious” on trade, noting it is targeting U.S. farmers on purpose.
China is targeting our farmers, who they know I love & respect, as a way of getting me to continue allowing them to take advantage of the U.S. They are being vicious in what will be their failed attempt. We were being nice – until now! China made $517 Billion on us last year.
— Donald J. Trump (@realDonaldTrump) July 25, 2018
Meanwhile, the Chinese Ministry of Commerce said it must retaliate against the U.S. tariffs “to defend the nation’s dignity.”
Source: www.cnbc.com
