The Chinese Ministry of Commerce announces a 25 percent charge on $16 billion worth of U.S. goods, including auto and crude oil.
China’s announcement comes after the U.S. Trade Representative’s office released a finalized list of $16 billion worth in Chinese goods that will be hit with tariffs.
Fred Imbert | @foimbert
The Chinese Ministry of Commerce announced a 25 percent charge on $16 billion worth of U.S. goods. The goods being targeted by China include crude oil and cars.
China’s announcement comes after the U.S. Trade Representative’s office released a finalized list of $16 billion worth in Chinese goods that will be hit with tariffs. The U.S. charges will take effect on Aug. 23. The latest U.S. list brings the total worth of Chinese goods facing a 25 percent tariff to $50 billion.
“This is tit-for-tat exactly,” said Art Hogan, chief market strategist at B. Riley FBR. “Our $16 billion comes at a scheduled time, which comes up on the 23rd. China said we see your $16 billion and we’ll match your $16 billion.”
“They’ll pretty much match what we do until they have no more levers to pull. The bad news is the trade war fears in China are escalating. The major concern right now in trade is China,” Hogan said.
Tensions between the U.S. and China have been simmering in recent months as the Trump administration takes a more protectionist stance when it comes to trade.
Just last month, tariffs on $34 billion worth of goods Chinese goods came into effect. Chinese state media has hit back at the U.S. in light of the levies that have been threatened, saying the Asian nation would retaliate.
On July 25, President Donald Trump said China is “being vicious” on trade, noting it is targeting U.S. farmers on purpose.
Meanwhile, the Chinese Ministry of Commerce said it must retaliate against the U.S. tariffs “to defend the nation’s dignity.”