The United States began collecting higher, 25 per cent tariffs on many Chinese goods arriving in US seaports on Saturday morning in an intensification of the trade war between the world's two largest economies and drawing retaliation from Beijing.

[WASHINGTON] The United States began collecting higher, 25 per cent tariffs on many Chinese goods arriving in US seaports on Saturday morning in an intensification of the trade war between the world's two largest economies and drawing retaliation from Beijing.

US President Donald Trump imposed the tariff increase on a US$200 billion list of Chinese goods on May 10, but had allowed a grace period for sea-borne cargoes that departed China before that date, keeping them at the prior, 10 per cent duty rate.

The US Trade Representative's office in a May 15 Federal Register notice set a June 1 deadline for those goods to arrive in the United States, after which US Customs and Border protection would begin collecting the 25 per cent duty rate at US ports.

The deadline expired at 12.01am EDT (12.01pm Singapore time) on Saturday.

The tariff increase affects a broad range of consumer goods, and intermediate components from China including internet modems and routers, printed circuit boards, furniture, vacuum cleaners and lighting products.

Earlier on Saturday, China began collecting higher retaliatory tariffs on much of a US$60 billion target list of US goods. The tariffs, announced on May 13 and taking effect as of midnight in Beijing, apply additional 20 per cent or 25 per cent tariffs on more than half of the 5,140 US products targeted.

Beijing had previously imposed additional rates of 5 per cent or 10 per cent on the targeted goods.

No further trade talks between top Chinese and US negotiators have been scheduled since the last round ended in a stalemate on May 10, the same day when Mr Trump announced higher tariffs on US$200 billion of Chinese goods and then took steps to levy duties on all remaining Chinese imports.

China ordered the latest tariff increases in response to Mr Trump's move.

Mr Trump has accused China of breaking a deal to settle their trade dispute by reneging on earlier commitments made during months of negotiations. China has denied the allegations.

Beijing has grown more strident in recent weeks, accusing Washington of lacking sincerity and vowing that it will not cave to the Trump administration's demands.

Its rhetoric has hardened particularly since Washington put Chinese company Huawei Technologies Co on a blacklist that effectively bans the firm from doing business with US companies. </s> WASHINGTON (Reuters) - The United States began collecting higher, 25% tariffs on many Chinese goods arriving in U.S. seaports on Saturday morning in an intensification of the trade war between the world’s two largest economies and drawing retaliation from Beijing.

Containers are seen at a port in Huaian, Jiangsu province, China May 5, 2019. Picture taken May 5, 2019. REUTERS/Stringer

U.S. President Donald Trump imposed the tariff increase on a$200 billion list of Chinese goods on May 10, but had allowed a grace period for sea-borne cargoes that departed China before that date, keeping them at the prior, 10% duty rate.

The U.S. Trade Representative’s office in a May 15 Federal Register notice set a June 1 deadline for those goods to arrive in the United States, after which U.S. Customs and Border protection would begin collecting the 25% duty rate at U.S. ports. The deadline expired at 12:01 a.m. EDT on Saturday

The tariff increase affects a broad range of consumer goods, and intermediate components from China including internet modems and routers, printed circuit boards, furniture, vacuum cleaners and lighting products.

Earlier on Saturday, China began collecting higher retaliatory tariffs on much of a $60 billion target list of U.S. goods. The tariffs, announced on May 13 and taking effect as of midnight in Beijing (1600 GMT), apply additional 20% or 25% tariffs on more than half of the 5,140 U.S. products targeted. Beijing had previously imposed additional rates of 5% or 10% on the targeted goods.

No further trade talks between top Chinese and U.S. negotiators have been scheduled since the last round ended in a stalemate on May 10, the same day when Trump announced higher tariffs on $200 billion of Chinese goods and then took steps to levy duties on all remaining Chinese imports.

China ordered the latest tariff increases in response to Trump’s move.

Related Coverage China to issue white paper on trade talks with U.S. on Sunday

Trump has accused China of breaking a deal to settle their trade dispute by reneging on earlier commitments made during months of negotiations. China has denied the allegations.

Beijing has grown more strident in recent weeks, accusing Washington of lacking sincerity and vowing that it will not cave to the Trump administration’s demands.

Its rhetoric has hardened particularly since Washington put Chinese company Huawei Technologies Co Ltd on a blacklist that effectively bans the firm from doing business with U.S. companies. </s> WASHINGTON (Reuters) - The United States will begin collecting tariffs on another $16 billion in Chinese goods on Aug. 23, the U.S. Trade Representative’s office said on Tuesday as it published a final tariff list targeting 279 import product lines.

USTR said that only five product lines were deleted from a list initially proposed on June 15, but semiconductors, among the largest categories, remained on the list.

The latest list brings to about $50 billion in goods that now face a 25 percent tariff that U.S. President Donald Trump has imposed on Chinese imports in an escalating trade war over China’s intellectual property practices and industrial subsidy policies. China has vowed to match Washington’s tariff moves with duties on an equivalent worth of U.S. products. </s> WASHINGTON, Aug 7 (Reuters) - The United States will begin collecting tariffs on another $16 billion in Chinese goods on Aug. 23, the U.S. Trade Representative's office said on Tuesday as it published a final tariff list targeting 279 import product lines.

USTR said that only five product lines were deleted from a list initially proposed on June 15, but semiconductors, among the largest categories, remained on the list.

The latest list brings to about $50 billion in goods that now face a 25 percent tariff that U.S. President Donald Trump has imposed on Chinese imports in an escalating trade war over China's intellectual property practices and industrial subsidy policies. China has vowed to match Washington's tariff moves with duties on an equivalent worth of U.S. products. (Reporting by David Lawder; editing by Jonathan Oatis) </s> WASHINGTON (UrduPoint News / Sputnik - 24th August, 2019) The United States will increase tariffs by another five percent on $550 billion worth of Chinese goods that are already being taxed in response to Beijing's new retaliatory measures, US President Donald Trump said in a statement.

"Starting on October 1st, the 250 billion Dollars of goods and products from China, currently being taxed at 25 percent will be taxed at 30 percent," Trump said via Twitter on Friday.

The US president also said the tariff on the remaining $300 billion worth of Chinese goods and services that will go into effect on September 1 will now increase from 10 percent to 15 percent.

Earlier on Friday, the Chinese State Council said tariffs ranging from 5 to 10 percent would be applied to $75 billion worth of US goods, with some taking effect on September 1 and others on December 15.

The latter batch will also include a 25 percent duty on American cars.

The US Trade Representative's office in a statement said it will begin implementing the tariffs effective October 1 after a notice and comment period. The remainder will go into effect on the already scheduled dates

For the 10% tariffs on approximately $300 billion worth of Chinese imports that the President announced earlier this month, the tariffs will now be 15%, effective on the already scheduled dates for tariff increases on these imports.

China's newly announced tariffs on Friday are in response to Trump's announcement earlier this month of the initial 10 percent tariffs on $300 billion in Chinese goods, although some items have since been removed from the list and others delayed until after the holiday shopping season. </s> Trump's tariffs: What are they? How do they work?

WASHINGTON (AP) — President Donald Trump has once again turned to tariffs to try to get his way with a U.S. trading partner.

This time, the target is Mexico: Trump plans to impose 5% tariffs on Mexican imports starting June 10 and to ratchet them up to 25% by Oct. 1 if the Mexicans don't do more to stop the surge of Central American migrants across the southern U.S. border.

Tariffs have become one of Trump's favorite policy tools. The president, who calls himself "a Tariff Man," has slapped the levies on imported steel, aluminum, dishwashers and solar panels. He's also imposed them on $250 billion worth of Chinese goods in a dispute over China's aggressive campaign to challenge American technological dominance. And he's planning to extend tariffs to the $300 billion worth of Chinese imports that he hasn't already targeted.

Before Trump, tariffs had long been fading into history, a relic of the 19th and early 20th centuries when nations tended to focus on keeping imports out and exporting as much as they could.

More than any other modern president, Trump has embraced tariffs as a punitive tool — against Europe, Canada and other key trading partners but especially against China , the second-largest economy after the U.S.

Here's a look at what tariffs are and how they work.

Q: ARE WE IN A TRADE WAR?

Economists have no set definition of a trade war. But with the world's two largest economies now slapping potentially punishing tariffs on each other, it looks as if a trade war has arrived. All told, Trump has threatened to hit as much as $550 billion worth of China's exports to the U.S. with punitive tariffs. That's more than the $506 billion in goods that China shipped to the United States last year.

It's not uncommon for countries — even close allies — to fight over trade in specific products. The United States and Canada, for example, have squabbled for decades over softwood lumber.

But the U.S. and China are fighting over much broader issues, like China's requirements that American companies share advanced technology to access China's market, and the overall U.S. trade deficit with China. So far, neither side has shown any sign of bending.

Q: SO WHAT ARE TARIFFS?

Tariffs are a tax on imports. They're typically charged as a percentage of the transaction price that a buyer pays a foreign seller.

In the United States, tariffs — also called duties or levies — are collected by Customs and Border Protection agents at 328 ports of entry across the country. Proceeds go to the Treasury. The tariff rates are published by the U.S. International Trade Commission in the Harmonized Tariff Schedule, which lists U.S. tariffs on everything from dried plantains (1.4 percent) to parachutes (3 percent).

Sometimes, the U.S. will impose additional duties on foreign imports that it determines are being sold at unfairly low prices or are being supported by foreign government subsidies.

Q: DO OTHER COUNTRIES HAVE HIGHER TARIFFS THAN THE UNITED STATES?

Most key U.S. trading partners do not have significantly higher average tariffs. According to an analysis by Greg Daco at Oxford Economics, U.S. tariffs on imported goods, adjusted for trade volumes, average 2.4 percent, above Japan's 2 percent and just below the 3 percent for the European Union and 3.1 percent for Canada.

The comparable figures for Mexico and China are higher: Both have higher duties that top 4 percent.

Trump has complained about the 270 percent duty that Canada imposes on dairy products. But the United States has its own ultra-high tariffs — 168 percent on peanuts and 350 percent on tobacco.

Q: WHAT ARE TARIFFS SUPPOSED TO ACCOMPLISH?

Two things: Raise government revenue and protect domestic industries from foreign competition. Before the establishment of the federal income tax in 1913, tariffs were a big money raiser for the U.S. government. From 1790 to 1860, for example, they produced 90 percent of federal revenue, according to "Clashing Over Commerce: A History of US Trade Policy" by Douglas Irwin, an economist at Dartmouth College. By contrast, last year tariffs accounted for only about 1 percent of federal revenue.

In the fiscal year that ended last Sept. 30, the U.S. government collected $34.6 billion in customs duties and fees. The White House Office of Management and Budget expects tariffs to fetch $40.4 billion this year.

Tariffs also are meant to increase the price of imports or to punish foreign countries for committing unfair trade practices, like subsidizing their exporters and dumping their products at unfairly low prices. Tariffs discourage imports by making them more expensive. They also reduce competitive pressure on domestic competitors and can allow them to raise prices.

Tariffs fell out of favor as global trade expanded after World War II.

The formation of the World Trade Organization and the advent of trade deals like the North American Free Trade Agreement among the U.S., Mexico and Canada reduced tariffs or eliminated them altogether.

After years of trade agreements that bound the countries of the world more closely and erased restrictions on trade, a populist backlash has grown against globalization. This was evident in Trump's 2016 election and the British vote that year to leave the European Union — both surprise setbacks for the free-trade establishment.

Critics note that big corporations in rich countries exploited looser rules to move factories to China and other low-wage countries, then shipped goods back to their wealthy home countries while paying low tariffs or none at all. Since China joined the WTO in 2001, the United States has shed 3.1 million factory jobs, though many economists attribute much of that loss not just to trade but to robots and other technologies that replace human workers.

Trump campaigned on a pledge to rewrite trade agreements and crack down on China, Mexico and other countries. He blames what he calls their abusive trade policies for America's persistent trade deficits — $566 billion last year. Most economists, by contrast, say the deficit simply reflects the reality that the United States spends more than it saves. By imposing tariffs, he is beginning to turn his hard-line campaign rhetoric into action.

Most economists — Trump's trade adviser Peter Navarro is a notable exception — say no. The tariffs drive up the cost of imports. And by reducing competitive pressure, they give U.S. producers leeway to raise their prices, too. That's good for those producers — but bad for almost everyone else.

Rising costs especially hurt consumers and companies that rely on imported components. Some U.S. companies that buy steel are complaining that Trump's tariffs put them at a competitive disadvantage. Their foreign rivals can buy steel more cheaply and offer their products at lower prices.

More broadly, economists say trade restrictions make the economy less efficient. Facing less competition from abroad, domestic companies lose the incentive to increase efficiency or to focus on what they do best. </s> Equity futures were showing gains the morning after the Trump administration applied additional tariffs on $200 billion of Chinese goods.

Dow Jones futures were higher by 0.17 percent. The S&P 500 was up 0.16 percent and the Nasdaq Composite inched up 0.22%.

President Donald Trump on Monday escalated the U.S.-China trade war by announcing new tariffs on about $200 billion of Chinese imports.

The move, which had been expected since at least the weekend, imposes 10 percent tariffs on the products. The levies will climb to 25 percent beginning Jan. 1, 2019. The Trump administration also threatened to pursue additional tariffs on $267 billion worth of Chinese goods if Beijing retaliates against farmers or other U.S. industries.

The Chinese commerce ministry said in a statement that China has no choice but to retaliate, but didn’t say how.

In Asian markets, China’s Shanghai Composite waved off the tariffs to finish 1.6 percent higher.

Japan's Nikkei returned to trading following Monday’s holiday and finished the day 1.4 percent higher.

In European trading, London’s FTSE was lower by 0.13 percent, Germany’s DAX gained 0.55 percent and France’s CAC added 0.53 percent.

U.S. stocks were lower Monday in anticipation of the new tariffs.

The Dow Jones Industrial Average fell 92.55 points, or 0.35 percent, to 26,062.12. The S&P 500 was down 16.18 points, closing at 2,888.80. The Nasdaq Composite dropped 114..5 points, or 1.43 percent, to 7,895.79.

After the close of the markets, FedEx reported quarterly profit that missed Wall Street estimates on Monday, as employee compensation and other expenses weighed on results.

Earnings are due Tuesday morning from Autozone, Cracker Barrel Old Country Store and General Mills. </s> Tariffs to be imposed on $16B in Chinese imports

The Trump administration announced Tuesday that it will go ahead with imposing 25 percent tariffs on an additional $16 billion in Chinese imports.

Customs officials will begin collecting the border tax Aug. 23, the Office of the U.S. Trade Representative said. The list is heavy on industrial products such as steam turbines and iron girders.

Tuesday’s announcement was not a surprise. In April, the administration had announced plans to slap tariffs on 1,333 Chinese product lines worth $50 billion a year. After receiving public feedback, it cut 515 products from the list in June and added 284. On July 6, the U.S. began taxing the 818 goods, worth $34 billion, remaining from the April list.

In the meantime, it sought public comment on the new items. On Tuesday, the administration said it had decided to go ahead with tariffs on 279 of the 284 items added in June; they’re worth about $16 billion a year.

China has been retaliating in kind.

And the conflict is likely to escalate: The administration is preparing tariffs of up to 25 percent on an additional $200 billion in Chinese products. </s> China Friday swiftly retaliated by imposing "equal" tariffs on US products following a decision by Donald Trump to slap duties on $50 billion of Chinese products.

"We will immediately launch tax measures of equal scale and equal strength," the commerce ministry said in a statement on its website which also called on other countries to "take collective action" against this "outdated and backwards behaviour".

China would also cancel agreements it had reached with the US during previous discussions over the penalties, it said.

The statement was issued after the US president announced tariffs of 25 percent on $50 billion of Chinese imports, making good on a pledge to punish the alleged theft of US intellectual property.

In a statement, he warned of "additional tariffs" should China hit back with tit-for-tat duties on American goods and services exports.

"Launching a trade war does not accord with global interests," the Chinese commerce ministry said.

"China definitely does not want a trade war, but in the face of the US's malicious, harmful and shortsighted conduct, China has to impose powerful countermeasures and resolutely defend the national interest and the people's interests," it said.

Trump's announcement capped months of sometimes fraught shuttle diplomacy between Washington and Beijing, in which Chinese offers failed to assuage Trump's grievances over the soaring US-China trade imbalance.

US Trade Representative Robert Lighthizer said Friday the United States would begin collecting duties on 818 Chinese imports valued at $34 billion as of July 6.

A second tranche of 284 goods valued at $16 billion -- which would bring the total to $50 billion -- will undergo an additional process of review and public comment, according to the trade representative's office.

Analyst BMI Research said Beijing could weather the impact, at least in the short term.

"This is likely to be manageable for the Chinese economy, and the government could offset the damage through tax cuts and domestic subsidies," the company said.

"The risk is that the situation continues to escalate and turns into a trade war, which would have heavier negative impact not only on China but on other economies in the region."

The Chinese commerce ministry did not provide details of how it planned to implement the new duties.

China previously issued a list of US products it would hit with 25 percent tariffs in the event of a trade war -- from big products like soybeans and beef to more niche items such as bourbon and ginseng -- although no timetable was specified.

China is the largest market for US soy and the threat of tariffs on exports of the commodity has the potential to whip up trade anxieties in stalwart Republican states.

US pork and cars manufactured in the United States are already on the radar of Chinese customs, which has stepped up inspections.
The United States begins collecting the higher, 25 percent tariffs on many Chinese goods arriving in U.S. seaports.