China's headline numbers are the first readings of the overall trade picture for the world's second-largest economy since USA duties on $34 billion of Chinese imports came into effect on July 6. Washington has long criticized China's trade surplus with the United States and has demanded Beijing cut it. The step brought the total worth of Chinese goods facing a 25 percent tariff to $50 billion. For instance, the major complaint is about the theft of U.S. intellectual property by Chinese firms.
China said it will begin imposing 25 per cent duties on an additional US$16 billion of American goods immediately after USA levies take effect, making good on its pledge to retaliate in kind.
Chinese data on Wednesday showed exports to the U.S. rose 13.3% in July to $41.5 billion against a year ago.
The Chinese Ministry of Commerce announced a 25 percent charge on $16 billion worth of USA goods including coal, grease, Vaseline, asphalt and plastic products, and recyclables. That was off slightly from June's 13.6% rate but still stronger than China's global export growth.
Americans import far more from China than the other way around, however, meaning Beijing may at some point need to look for other means of retaliation.
Although the move was expected, it solidifies the view that there appears to be no effort underway to defuse the dispute between the world's two largest economies.
China has repeatedly warned it will strike back, and has already begun enforcing or is getting ready to enforce its own retaliatory tariffs, saying the United States is threatening the global free trade order with its protectionism.More news: The Bachelorette finale: Blake ‘hysterical’ after Becca dumps him
The worry is that the escalating Sino-U.S. trade war, rising corporate bankruptcies, and a steep decline in the value of the yuan versus the dollar could put a significant dent on the economy.
China didn't waste time in retaliating, and said today that its tariffs on 333 USA products, including crude oil, would also take effect on August 23.
All China's main state newspapers published a lengthy commentary by the official Xinhua news agency, entitled "declaration", on their front pages.
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The United States and China implemented tariffs on $34billion worth of each other's goods in July.
The office of US Trade Representative Robert Lighthizer said its "exhaustive" investigation showed that "China's acts, policies and practices related to technology transfer, intellectual property and innovation are unreasonable and discriminatory and burden US commerce".