Previously, China declared that it will impose additional tariffs on a total of $75 billion of U.S. goods. This is in revenge for President Donald Trump’s latest planned taxes on Chinese imports.
Starting September 1, some of the countermeasures will take effect while the rest will come into effect from December 15. This is according to the statement from the Ministry of Commerce.
This reflects the timetable of the U.S. that has disburse about 10% tariffs on nearly $300 billion of Chinese shipments.
Meanwhile, starting next month, an additional 5% tariff will be put on American soybeans and crude-oil imports and a 25% duty on U.S. cars will restart December 15.
The news from Beijing renewed concerns about the world’s two largest economies and a global development outlook that’s already looking wobbly.
U.S. stock futures fell along with Treasury yields and oil prices.
Developing market and commodity-related currencies also weakened, while safe havens such as the yen and gold were maintained.
The announcement comes as leaders from the Group of Seven nations arrange to meet in France.
Meanwhile, central bankers will assemble in Jackson Hole, Wyoming, to discuss issues such as the global downfall.
New Tariff Assurance to Lead Progress
In a tweet by Hu Xijin, the editor-in-chief of the Global Times, he indicated that the Chinese announcement was prefigured.
Earlier this week, China assured that any new tariffs from the U.S. would lead to growth and reprisal.
The U.S. has also said it will intensify tariffs on some Chinese goods starting September 1, although President Donald Trump has already delayed some of that tariff amid economic commotion.
Moreover, earlier this month, after Trump has given the go-ahead for 10% tariffs on nearly $300 billion Chinese imports that haven’t been hit by higher duties, China paused purchases of agricultural goods and let the yuan to decline.
Since then, representatives have spoken by phone and are looking forward to another call in the coming days.
According to sources, the Chinese delegation is sticking to their plan of travelling to the U.S. in September for a face-to-face meeting. This plan may offer a chance of further reprieve.
The U.S. side is still expecting for that visit to happen.
Trump’s economic adviser Larry Kudlow indicated in a news report that they are hopefully still planning on having the Chinese team to visit Washington D.C. to continue the negotiations.
On Thursday, in Washington “I don’t want to predict, but we will see,” Kudlow said.