China has announced it will increase tariffs imposed on about US$60bn of US goods in retaliation for president Donald Trump’s latest escalation of the trade war, media reports on Monday (13 May) said, though auto parts remain exempt.
The tariffs would take effect on 1 June, according to a statement on the China ministry of finance website on Monday cited by Bloomberg.
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The charges would therefore be raised on most of the goods listed on a previous retaliation list effective last September, Bloomberg added.
The Trump administration last week announced an extra 25% tariff on thousands of Chinese products worth about $200bn and the US was set to release a plan to levy a 25% additional tariff on all remaining imports from China later on Monday.
Tariffs will be imposed at 5%-25% levels but auto parts, which initially were on the list but have been exempted since December, are still excluded, Bloomberg noted.
The ministry also said in another statement Bloomberg cited that importers and associations could apply for exemptions for goods on the lists which would lift the punitive tariffs for a year while companies could also receive a rebate of already paid tariffs.
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By GlobalData“China’s tariff move is in response to the US unilateralism and trade protectionism,” the ministry said in a separate statement cited by Bloomberg today.
“China hopes that the US will return to the right track of bilateral trade talks, work together with China and meet each other halfway, to reach a win-win and mutually beneficial agreement on the basis of mutual respect.”
CNBC reported the announcement led to a 611-point drop on the Dow Jones Industrial Average while a 3.4% tech sector drop sent the S&P500 down 2.3% and the Nasdaq Composite by 3.2% in US morning trading.
See also: US imposes higher tariffs on China imports
