Trump going ahead with taxes on $16B in Chinese imports

Trump going ahead with taxes on $16B in Chinese imports

The dip in China's USA surplus is unlikely to ease tensions with the Trump.

Data from the General Administration of Customs showed on Wednesday that exports advanced 12.2 percent year-on-year in July.

This is the second tranche of tariffs following the July 6 levy on approximately $34 billion worth of Chinese goods, the USTR said.

"The impact of tariffs on exports is yet to be reflected". The tariffs on 279 products, including motorcycles, speedometers and antennas, will take effect August 23.

"Equally though, this may reflect a broader softening in economic momentum among developed economies given that exports to the European Union edged down too".

Trump has also threatened 25 percent tariffs on another $200 billion worth of Chinese goods, and possibly another $300 billion worth, in his administration's quest for changes to China's intellectual property, market access and industrial subsidy policies.

Beijing has already threatened to retaliate against United States products in kind, warning Washington against "blackmailing and pressuring".

The dispute has continued to escalate, with Trump last week threatening to raise to 25% from the planned 10% tariffs on the next $200bn in Chinese imports his administration plans to target.

The new tariffs will be applied to a list of 279 products, including motorcycles, speedometers and antennas, in the second round of tariffs applied by the United States on Chinese goods, despite persistent warnings by American businesses that the tariffs will affect U.S. consumers.

American imports far more from China than the other way around, meaning Beijing may at some point need to look for other means of retaliation.

The US-China trade war will cut the global gross domestic product by 0.7 percent by 2020, Oxford Economics said in a note Tuesday.

In March 2018, the USTR had released the findings of its "exhaustive" Section 301 investigation that found China's acts, policies and practices related to technology transfer, intellectual property, and innovation are "unreasonable and discriminatory and burden U.S. commerce".

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