China Tariffs on US Crude Not Game-Changing Event

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This round of tariffs is the second to be imposed under the Trump administration, following an earlier round in which $34 billion of Chinese imports saw altered charges starting July 6th.

The action is the latest by U.S. President Donald Trump to put pressure on China to negotiate trade concessions after imposing tariffs on $34 billion in goods last month.

Trump, who has boasted that trade wars are "easy to win", has threatened to ramp up the pressure and slap tariffs on virtually all of China's exports to the United States if Beijing does not back down and take steps to reduce the $335 billion USA trade deficit with that country.

China didn't waste time in retaliating, and said today that its tariffs on 333 us products, including crude oil, would also take effect on August 23.

The Asian economic powerhouse will add the tariffs on USA imports to measure the same tax placed on their exports, CNBC said. Year-on-year, the growth of China's exports to the U.S. slowed to 11 percent last month from 12.5 percent in June, while import growth accelerated to 11 percent from 9 percent.

It is the second round of duties imposed by the countries as Washington and Beijing exchange tit-for-tat measures in an escalating trade war.

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Due to the rising trade tension between China and the United States, the trading arm of Chinese state oil major Sinopec is said to have suspended imports of crude oil from the United States.

The world's two biggest economies are locked in a trade dispute. China has responded with retaliatory tariffs of its own.

China, however, would run out of USA imports to levy, as it bought only $130 billion worth of American goods past year.

Analysts from Oxford Economics have predicted that China's GDP growth may slow to 6.4 per cent this year, from 6.9 per cent in 2017, as the effects of the trade war weigh.

The office of US Trade Representative Robert Lighthizer said its "exhaustive" investigation showed that "China's acts, policies and practices related to technology transfer, intellectual property and innovation are unreasonable and discriminatory and burden US commerce".

Trade tensions between the United States and China have been intensifying over recent months with each country imposing levies on mutual imports with extra duties. President Donald Trump has suggested he may tax effectively all imports of Chinese goods, which reached more than $500 billion a year ago.

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