China to hit US LNG imports with tariff

Postado Agosto 11, 2018

China has promised to retaliate with another $16 billion in tariffs on US imports. Imports surged 27.3 percent to $187.5 billion, up from the previous month's 14.1 percent.

The Trump administration announced on August 8 that it will impose 25% tariffs on an additional $16 billion worth of Chinese imports, as expected.

The U.S.is even willing to hurt allies and itself to make that point: The tariffs "will hit semiconductors from China, even though numerous basic chips in these products originate from the United States, Taiwan or South Korea". New Chinese tariffs are to apply to imports of all scrap commodities from the United States, including ferrous and non-ferrous metal scrap, recovered paper and plastic scrap, and to various other goods categories.

Exports to the United States rose 13.3 percent over a year earlier to USD41.5 billion.

It could also have political consequences, as 15 of the 23 states that count China as their top import source voted for Trump in 2016.

The US action that prompted the Chinese retaliation was the latest by President Donald Trump to put pressure on China to negotiate trade concessions, after Washington imposed tariffs on US$34 billion in goods last month.

Escalating its tensions with Beijing, the Trump administration has also threatened to impose penalties on an additional $200 billion in Chinese exports to the United States. It is expected that Morocco will import approximately $10 million in US poultry with increased growth over time.

According to Panjiva research, a business intelligence firm owned by S&P Global, China's $60 billion figure hits 56% of US exports, including 85% of all electrical machinery and 75% of electronics.

Exports to the rest of the world may have been helped by a weaker Chinese currency. Economic growth has slowed since regulators tightened controls on bank lending to rein in surging debt. The decline reflects import bans and higher quality requirements introduced by China.

The expanding domestic market has made great contributions to China's economic development despite being overwhelmed by the outstanding achievements of foreign trade, which made China the world's largest exporter of goods in 2009. As Beijing has matched Washington's tariffs, $100 billion worth of trade between the United States and China will now be subject to the tariff hike.

China's crude oil imports recovered slightly in July after falling for the previous two months, but were still among the lowest this year due to a drop-off in demand from the country's smaller independent, or "teapot", refineries. The trade gap with the 28-nation European Union contracted by 8 percent to $11.2 billion. Items included on the list subject to a 25% retaliatory tariff include hog casings, sheep casings, gizzards, wheat and wine.

Trump has claimed in recent tweets that "tariffs are working far better than anyone ever anticipated", linking them to a downturn that has shaved almost a quarter from the value of Chinese stocks since late January.

China has repeatedly warned it will strike back against any further punitive measures by Trump, saying the United States is threatening the global free trade order with its protectionism.

Beijing has stepped up efforts, so far without success, to recruit governments including Germany and France as allies.