Wednesday, April 04, 2018 10.34AM / Economics Desks
Chinese state TV is reporting that 106 US products are affected, including a 25% tariff on soybeans, automomobiles and chemicals. In total, the goods affected are worth $50bn per year.
So, Beijing hasn’t wasted any time in delivering on its pledge to hit back against the new proposed US tariffs on 1,300 of its products.
Soon after, the Chinese finance ministry released more details of the new 25% tariffs which it will impose on US imports, in retaliation to Donald Trump’s new tariffs on its exports. It confirms that the reciprocal measures cover 106 different US products.
The list includes soybeans, chemicals, whisky, cigars, some types of beef, corn and wheat.
Some types of aircraft, lubricants, tobacco and orange juice are also targeted, along with some trucks and SUVs.
Crucially, these imports were worth $50bn in 2017 -- that’s the same value as the 1,300 Chinese goods which America is targetting with its new tariffs.
Many US farmers rely on sales of soybeans to China, so this could have a significant impact on America’s agriculture sector.
The soybean price has taken an immediate hit.
Soybean trading on the future market Photograph: Bloomberg TV, News from The GuardianUK
The array of Chinese products that would be affected by America’s new 25% tariffs is lengthy, and varied.
It includes “compounds of depleted uranium”, nuclear reactor parts, a wide range of vaccines and medical products, aircraft tyres, stainless steel and aluminium in various sizes, and aircraft jets and tyres, domestic and commercial dishwashers, storage water heaters, and sewing machines.
On the agricultural side, poultry incubators, haymaking machines and milking devices are all hit -- suggesting US farmers could suffer from these tariffs. Cranes, snowploughs and locomotive parts are all on the list too.
Technology products are also hit, including TV cameras, a range of televisions, and even fuses.
Even weapons are covered - including rocket launchers, flame-throwers, rifles, shotguns, pistols and military weapons.
The US will now hold a consultation on whether to impose these tariffs.
The Full breakdown of Items China has Tariffed
After promising retaliatory actions against Trump's steel/aluminium tariffs, Chinese news network Xinhua has announced that China has imposed tarriffs on 128 U.S products , effective Monday.
The 128 products, which includes mostly food/beverages like pork and wine, will be given tariffs of 15-25%. China's Ministry of Finance stated the move was to, "safeguard Chinese interests using WTO rules".
CNN Money outlined the specific products that would be taxed based on Department of Agriculture data, and overall a total of $3BN U.S imports to China would be affected. Most notably, China receives 40% of all U.S ginseng exports, 9% of all pork shipments, and 5% of all international wine sales annually.
Trump has also alluded to a new list of Chinese tariffs focused on technology totaling $50-$60BN , although nothing has been formally announced yet. A full breakdown of the items China has tariffed can be found below.
Fruit: $260.1 million exported to China, 6% of all US fruit exports
Wine: $74.6 million of wine exported to China, 5% of all US wine exports
Pork: $487.9 million exported to China, 9% of all US pork exports
Nuts: $224.9 million exported to China, 3% of all US nuts exports
Ginseng: $22.6 million exported to China, 40% of all US ginseng exports
Ethanol alcohol: $32.2 million exported to China, 3% of all US ethanol alcohol exports
Related Tariff News
1. US-China import tariffs: Trade Dispute Explained – The Indian Express