Chinese Import Tariffs May Climb Higher

Chinese Import Tariffs May Climb Higher

The U.S. government is taking comments on a proposal to increase the tariff on Chinese imports from the current 10 percent rate up to 25 percent. The tariff increase would cover a wide selection of Chinese imports, including fruits, vegetables, garlic, and more. On June 18th, President Trump directed U.S. Trade Representative Robert Lighthizer to identify another $200 billion worth of Chinese goods for additional tariffs at a 10 percent rate. China retaliated in kind with duties on U.S. imports. Now, Lighthizer says the President asked him to consider raising the proposed rate of the additional duty from 10 percent up to 25 percent.

Some of the fresh Chinese imports will include onions, apples, cauliflower, and broccoli. The comment period will close on September 5th. The USDA says it’s working on their three-pronged approach to help growers hurt by the retaliatory tariffs. However, California leaders are critical of the plan, saying they’re asking Congress to provide more support to specialty growers, who they fear won’t necessarily be helped by the tariff relief plan.

China immediately responded to the latest U.S. tariff threat by publishing a list of $60 billion in U.S. imports it will lay tariffs on. That’s dependent on whether or not the U.S. follows through on its latest trade threats. Bloomberg says China will levy duties ranging from five percent up to 25 percent on more than 5,000 kinds of U.S. imports if America follows through on its threat of another $200 billion in tariffs. Beijing will impose five percent tariffs on more than 600 types of U.S. goods, including planes and computers.

A 10 percent tariff goes on almost 1,000 products, including textiles. A 20 percent tariff will apply to more than 1,000 items, including chemicals and paper. The one that hits agriculture hardest will be a proposed 25 percent duty on items like meat, wheat, and wine. A Ministry of Commerce statement says, “The implementation date will be subject to U.S. actions, and China reserves the right to continue introducing other countermeasures.”

Source: NAFB News Service

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