China retaliation tariffs on US to be introduced on June 1
Year-long trade friction between the world's two largest economies to worsen with tariffs on $60bn of US goods
China announced that it will increase tariffs imposed on about $60 billion (Dh220bn) of US goods in retaliation for President Donald Trump’s latest escalation of the trade war.
The tariffs will take effect on June 1, the Ministry of Finance said on Monday.
The charges will be raised on most of the goods listed on a previous retaliation list introduced last September.
The year-long trade friction between the world’s two biggest economies worsened last week when the Trump administration announced an extra 25 per cent tariff on thousands of Chinese products worth about $200bn.
The US is set to release a plan to levy a 25 per cent additional tariff on all remaining imports from China later on Monday.
China’s retaliatory tariffs will be imposed at the following levels:
- 25% tariffs on 2,493 items from current 10%
- 20% tariffs on 1,078 items from current 10%
- 10% tariffs on 974 items from current 5%
- 5% tariffs to continue on 595 items. Car parts, which were initially on the list but have been exempted since December, are still excluded
The ministry said in another statement that importers and associations could apply for exemptions for goods on the tariff lists.
Once approved, the goods will be excluded and will not be subject to the punitive tariffs for a year. Companies can also receive a rebate of tariffs already paid.
“China’s tariff move is in response to the US unilateralism and trade protectionism,” the ministry said in a statement on Monday.
“China hopes that the US will return to the right track of bilateral trade talks, work together with China and meet each other halfway, to reach a win-win and mutually beneficial agreement on the basis of mutual respect."
Updated: May 14, 2019 09:28 AM