China announces new tariffs on $75B in US goods

by John Bowden - 08/23/19 8:41 AM ET

China announced Friday it will impose tariffs on $75 billion worth of U.S. goods, the latest salvo in the year-plus trade war between the world’s two largest economies.

The country’s State Council said tariffs of 5 percent to 10 percent will be imposed on a variety of American goods in two batches, with the first going into effect next month and a second scheduled for December, multiple media outlets reported, citing state-run media.

The second batch of tariffs will reportedly include a 25 percent tariff on all U.S. automobiles.

{mosads}“In response to the measures by the US, China was forced to take countermeasures,” the State Council said, according to CNBC. “The Chinese side hopes that the US 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.”

The move comes the same month that President Trump said the U.S. would postpone tariffs on several consumer-related goods that were slated to take effect Sept. 1. Those tariffs were pushed back to Dec. 15 in an effort to shield American consumers from the effects of the trade war heading into the holiday shopping season.

The nonpartisan Congressional Budget Office this week estimated that trade wars are expected to reduce the average U.S. household’s income by $580 by 2020.

The announcement by China also comes just two days after Trump declared himself “the chosen one” to negotiate with China, while defending his administration’s costly trade battles.

“Somebody said this is Trump’s trade war. It’s not my trade war. This is a trade war that should have taken place a long time ago by a lot of other presidents,” Trump said told reporters on Wednesday, referencing former Presidents Clinton, George W. Bush and Obama.

“Somebody had to do it. I am the chosen one,” Trump added. “Somebody had to do it, so I took on China. I took on China on trade, and you know what? We’re winning.”

Beijing said in a statement Wednesday that the U.S. should return to “beneficial” trade with China and urged the Trump administration to compromise on a number of trade issues.

“We hope the United States will meet China halfway,” a foreign ministry spokesman said, adding that he hoped the two countries would “work out a resolution that is acceptable to both sides on the basis of mutual respect and equal treatment.”

Updated at 9:14 a.m.

Tags China Donald Trump Tariffs trade war