Cliff Notes – China launches tariffs on US
- Tariff Implementation: China launches tariffs on US and target the US military and initiated new tariffs on a range of U.S. agricultural products, with chicken, wheat, and corn facing a 15 percent levy, while soybeans, pork, beef, and fruit will incur a 10 percent tariff.
- Trade Tensions Escalate: This move marks a significant escalation in the ongoing trade dispute between China and the United States, following a recent increase in U.S. tariffs on Chinese imports by President Trump.
- Exemptions for Pre-Shipped Goods: Goods that were shipped from the U.S. prior to the tariff implementation on April 12 will not be subject to these new tariffs, according to the Chinese government.
- Impact on U.S. Businesses: In addition to imposing tariffs, China is restricting 15 U.S. companies from purchasing Chinese products without special permission, including companies that supply military equipment. It is also blocking 10 other U.S. companies from operating in China.
- U.S. Tariff Context: This tariff action from China follows President Trump’s earlier tariff adjustments aimed at pressuring China to address issues such as the flow of fentanyl into the United States.
China’s Tariffs on US – Target the US military
Beijing began imposing tariffs on many farm products from the United States, for which China is the largest overseas market. The Chinese government announced the tariffs last week, shortly after President Trump raised tariffs on Chinese products for the second time since he took office in January.
The Chinese tariffs will include a levy of 15 percent on U.S. products like chicken, wheat, and corn, as well as 10 percent on products like soybeans, pork, beef, and fruit. Beijing said that goods that had already been shipped by Monday and imported by April 12 would not be subject to the new tariffs.
A spokesman for the National People’s Congress, China’s annual legislative session, said last week that Mr. Trump’s latest tariffs had “disrupted the security and stability of the global industrial and supply chains.”
Asked if he was expecting a recession this year, Trump said there was a “period of transition” taking place.
Commerce Secretary Howard Lutnick, however, insisted there would be no contraction in the world’s largest economy, while acknowledging that the price of some goods may rise.
Blocking 15 US companies from buying Chinese products
The Chinese government also said it was blocking 15 U.S. companies from buying Chinese products unless it granted special permission, including a manufacturer of drones that supplies the U.S. military. And it said it was blocking another 10 U.S. companies from doing business in China.
Mr. Trump imposed a 10 percent tariff on almost all imports from China in early February, and raised the tariff to 20 percent last week. He has said the actions were intended partly to pressure China to reduce the flow of the opioid fentanyl into the United States.
Beijing began imposing tariffs on Monday on many farm products from the United States, for which China is the largest overseas market. It is the latest escalation of a trade fight between the world’s two largest economies.
The Chinese government announced the tariffs last week, shortly after President Trump raised tariffs on Chinese products for the second time since he took office in January. The Chinese tariffs will include a levy of 15 percent on U.S. products like chicken, wheat and corn, as well as 10 percent on products like soybeans, pork, beef and fruit.
Chinese tariffs will hurt the United States
Beijing said that goods that had already been shipped by Monday and imported by April 12 would not be subject to the new tariffs.
A spokesman for the National People’s Congress, China’s annual legislative session, said last week that Mr. Trump’s latest tariffs had “disrupted the security and stability of the global industrial and supply chains.”
The Chinese government also said it was blocking 15 U.S. companies from buying Chinese products unless it granted special permission, including a manufacturer of drones that supplies the US military. And it said it was blocking another 10 US companies from doing business in China.
Mr. Trump imposed a 10 percent tariff on almost all imports from China in early February, and raised the tariff to 20 percent last week. He has said the actions were intended partly to pressure China to reduce the flow of the opioid fentanyl into the United States.