Published: Wed, August 08, 2018
Money | By Bruce West

Chinese Exports Accelerate As US Prepares New Tariffs In Heated Row

Chinese Exports Accelerate As US Prepares New Tariffs In Heated Row

The latest U.S. tariffs on 279 products, including motorcycles, speedometers and antennas, will also take effect August 23. The new list covers products ranging from motorcycles to steam turbines and railway cars.

As early as July 5, the story of tariffs on US crude by China had been floated.

The trade war between the USA and China continues to escalate, with China slapping a 25% tariff on another $16 billion worth of US goods.

The new set of measures are the second tranche of tariffs that President Donald Trump originally announced in March, following tariffs imposed on $34 billion worth of Chinese imports that went into effect in early July.

Last week's Chinese threat to include LNG on a tariff list has already had Chinese LNG end-users and suppliers saying that they would likely deter spot procurement of U.S. LNG cargoes in the near term if the tariff comes into effect. The step brought the total worth of Chinese goods facing a 25 percent tariff to $50 billion.

USTR is conducting a public comment period for those tariffs, which could reach 25 percent, due to end September 5.

UBS Wealth Management CIO Mike Ryan on a new study on USA business owners' views about the economy and tariffs. US President Donald Trump accused Beijing of "being vicious" on trade, stressing that Chinese measures were targeting US farmers on goal.

The surplus with the United States was higher than China's overall trade surplus in July, which was $28.05 billion, indicating China ran a net trade deficit with the world excluding the U.S.

China's July exports rose 12.2 percent from a year earlier, beating forecasts for a 10 percent increase according to the latest Reuters poll, and up from a 11.2 percent gain in June.

Customs officials will begin collecting the border tax August 23, the Office of the U.S. Trade Representative said. While there's no major risk of the world lapsing into "damaging stagflation", the possibility remains of a "bigger blow-up" that sharply reduces trade, as in the 1930s, it said. So far, despite the rhetoric, only $37bn worth of imports into China and the USA have actually been affected.

Chinese state media has said Beijing will not be cowed by Washington's threats. It would likely have to impose penalties on US companies doing business in China to make up the difference.

Trump's mission to reduce the United States trade deficit via the threat of tariffs has brought him into conflict with China as well as U.S. allies, roiling financial markets and raising fears of a global trade war the International Monetary Fund has warned may undermine the strongest economic upswing in years.

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