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China announces tariff hike on $75 billion of US products

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Posted at 6:47 AM, Aug 23, 2019
and last updated 2019-08-23 10:00:41-04

BEIJING (AP) - China has announced it will raise tariffs on $75 billion of U.S. products in retaliation for President Donald Trump's planned Sept. 1 duty increase in a war over trade and technology policy.

The official Xinhua News Agency said Friday the tariffs of 10% and 5% take effect on two batches of goods Sept. 1 and Dec. 15 but gave no details on what imports would be affected.

CNBC reported China will also impose a 25% tariff on U.S. cars and 5% on auto parts and components that will go into effect Dec. 15. CNBC said China and the U.S. will discuss trade in Washington early next month.

"In response to the measures by the U.S., China was forced to take countermeasures," the Chinese Council said as reported by CNBC. "The Chinese side hopes that the U.S. will continue to follow the consensus of the Osaka meeting, return to the correct track of consultation and resolve differences, and work hard with China to end the goal of ending economic and trade frictions.”

Trump previously announced plans to raise tariffs on an additional $300 billion of Chinese imports on Sept. 1 but postponed a portion of that to Dec. 15. CNBC said some of these tariffs are delayed to December to help avoid any problems during holiday shopping.

The trade battle has continued over a year and a half and U.S. agricultural products continue to be an obstacle in the trade conflict, according to CNBC.

China's government appealed to Trump this week to compromise in deadlocked talks aimed at settling the dispute that has battered exporters on both sides and threatens to tip the global economy into recession.

CNBC said White House trade advisor Peter Navarro stated the U.S. needs to figure out structural issues, such as cyber intrusion into business networks and currency manipulation, with China before they can reach a deal.