The tariff standoff continues with China.
On Tuesday, Aug. 7, the Office of the U.S. Trade Representative (USTR) released a list of $16 billion worth of tariffs against Chinese goods. The targeted items were mostly industrial items identified as part of, or benefiting from, China’s “Made in China 2025” industrial policy. The tariffs are “part of the U.S. response to China’s unfair trade practices related to the forced transfer of American technology and intellectual property,” according to the USTR.
“This second tranche of additional tariffs under Section 301 follows the first tranche of tariffs on approximately $34 billion of imports from China, which went into effect on July 6,” the Office of the USTR said in the announcement of the additional tariffs.
On June 15, a total of $50 billion worth of tariffs were proposed against China spread out on two lists. The first list included items that would see an additional 10 percent tariff. This second list includes items that will see an additional 25 percent tariff. These new tariffs will take effect Aug. 23.
The list included agricultural items such as irrigation equipment, agricultural sprayers, non-disc harrows, no-till seeders and planters, and fertilizer distributors.
Despite the USTR announcement including an implementation date for the $16 billion in tariffs, the office also announced that there will be a public comment period beginning Aug. 10.
More than doubling down
Just a week before the release of the $16 billion tariff list, USTR Robert Lighthizer announced he had been directed by President Donald Trump to up the ante on the $200 billion in tariffs proposed on July 10. In that proposal, over 210 pages of items were listed as potential targets for a 10 percent tariff. In the Aug. 1 announcement, Lighthizer said the president had “directed that I consider increasing the proposed level of the additional duty from 10 percent to 25 percent.”
Such a move would make the July 10 list worth up to $500 billion.
“The increase in the possible rate of the additional duty is intended to provide the administration with additional options to encourage China to change its harmful policies and behavior and adopt policies that will lead to fairer markets and prosperity for all of our citizens,” Lighthizer said.
“The Trump administration continues to urge China to stop its unfair practices, open its market, and engage in true market competition. We have been very clear about the specific changes China should undertake. Regrettably, instead of changing its harmful behavior, China has illegally retaliated against U.S. workers, farmers, ranchers and businesses.”
Following the Aug. 7 announcement of $16 billion in tariffs against China, the Chinese Ministry of Commerce responded in kind, as it has repeatedly promised to do. According to Reuters, the list of goods targeted in China’s retaliatory $16 billion in tariffs includes fuel, automobiles, medical goods and technologies, and metal items. WLJ was unable to access the Chinese Ministry of Commerce’s announcement directly. — WLJ
