Tariffs will boomerang to harm US
The US’s plans to hit $200 billion worth of Chinese imports with 10% levies will span the range of consumer and industrial goods, from agricultural and beverages to fuel and trailers. The US Trade Representative’s tariff list covers over 6,000 product types “from across all sectors of the Chinese economy”, Caixin quote.
According to the USTR, the measures have been put in place as a reprimand for Beijing’s retaliatory tariffs introduced last week in a tit-for-tat move, with it becoming “apparent”, that the initial $34 billion signed in by the White House was “not sufficient” to force China to change its controversial trade practices.
Among the $200 billion list are goods that, as Bloomberg noted, are no longer traded between the US and China, such as trout, as well as unexpected products such as badger hair. Some significant non-consumer goods, like the relatively clean fossil fuel liquefied natural gas, have also made it onto the shortlist.
The new tariffs, should they come into effect after a comment period at the end of August, could slow China’s economic growth for the year by 0.3-0.5%, according to Caixin.
Immediately, China reacted on US plan to hike up the tariffs & said to hit back! Beijing has vowed to retaliate to the White House’s decision to apply 10% tariffs to $200 billion of Chinese goods with equal measures of its own, as well as take the matter to the World Trade Organisation.
Details on the quantity and nature of the retaliatory tariffs were not given, according to Reuters. China’s foreign ministry called the US’s actions “typical bullying” and that the escalating dispute represented a “fight between unilateralism and multilateralism.”
On the other hand The National Retail Federation issued the following statement from Senior Vice President for Government Relations David French after the Office of the U.S. Trade Representative released a list of $200 billion of Chinese imports to be subject to new tariffs.
“The latest list of $200 billion of products to be subject to tariffs against China doubles down on a reckless strategy that will boomerang back to harm U.S. families and workers. The threat to the U.S. economy is less about a question of ‘if’ and more about ‘when’ and ‘how bad.’ Tariffs on such a broad scope of products make it inconceivable that American consumers will dodge this tax increase as prices of everyday products will be forced to rise.
And the retaliation that will follow will destroy thousands of U.S. jobs and hurt farmers, local businesses and entire communities.
