U.S. to impose $16 billion import tariffs on China

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In April, the administration had announced plans to slap tariffs on 1,333 Chinese product lines worth $50 billion a year.

Beijing has asked banks and local governments to stimulate rail and other infrastructure projects in the wake of slowing economic-growth momentum.

And President Donald Trump has threatened to impose tariffs on virtually everything China sells to the United States.

Washington had already imposed tariffs on United States dollars 34 billion on July 6 but held off on a final USD 16 billion in goods as a result of concerns from USA companies.

Sales to the USA rose by 13.3%, while China's surplus with the States shrank marginally to $28.1bn (£21.7bn) last month from a record $29bn (£22.4bn) in June. However, analysts still expect a less favorable trade balance for China in coming months given it's early days in the tariff brawl.


"Looking ahead, we expect export growth to cool in the coming months, though this will primarily reflect softer global growth rather than United States tariffs, the direct impact of which will continue to be mostly offset by the renminbi's (yuan's) recent depreciation", Capital Economics' Senior China Economist Julian Evans-Pritchard wrote in a note.

Although the move was expected, it cements the view that there appears to be no effort underway to defuse the dispute between the world's two largest economies that have continued to exchange threats.

A U.S. -China trade war will reduce global output by 0.7 per cent by 2020, with China's economy taking a 1.3 per cent hit and U.S. GDP dropping 1 per cent, Oxford Economics said in a research note Tuesday, before the new list was released.

The duties are part of a broader round of USA tariffs on $50bn worth of goods announced in March.

The worry is that the escalating Sino-U.S. trade war, rising corporate bankruptcies, and a steep decline in the value of the yuan versus the dollar could put a significant dent on the economy.


Chinese state media, reflecting the government's stance, has said China will not be cowed in the face of USA threats.

China has now either imposed or proposed tariffs on $110 billion of USA goods, representing the vast majority of China's annual imports of American products.

In March 2018, the USTR had released the findings of its "exhaustive" Section 301 investigation that found China's acts, policies and practices related to technology transfer, intellectual property, and innovation are "unreasonable and discriminatory and burden USA commerce".

The U.S. and China have been trying to restart high-level talks that broke off after Trump followed through on his tariff threats.


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