Published: Wed, July 11, 2018
Economy | By

U.S. Soybean Vessel Was Loaded for China Just Before Duties

U.S. Soybean Vessel Was Loaded for China Just Before Duties

The following day, China imposed tariffs on a slew of American agricultural goods.

"As a result of China's retaliation and failure to change its practices, the president has ordered USTR to begin the process of imposing tariffs of 10 percent on an additional $200 billion of Chinese imports", U.S. Trade Representative Robert Lighthizer said in a statement.

The move makes good on the president's threat to respond to China's retaliation for the initial USA tariffs on $34 billion in Chinese goods, which went into effect on Friday and would eventually place almost half of all Chinese imports under tariffs.

The White House says the tariffs are a response to unfair trade practices by China. Hours later, China came out with more tariffs, this time taking aim at Boeing planes. On Monday, China placed fees on a wide range of US products, including scrap aluminum, sparkling wine and apples.

"Special Report" panel reacts to the strategy behind the Trump administration's new charges on Chinese products. But China only bought about $135 billion in US goods previous year, meaning it will run out of American products to tax before it matches Trump's latest move.

In addition, the considering separate duties on a further US$16 billion in Chinese goods, after a public hearing later this month.

China will reimburse the buyer for the cost of the 25 percent tariff on soybean imports from the USA if the cargoes are for state reserves, Bloomberg reported earlier citing people familiar with the matter.

"The Trump administration is gambling that by wielding such a big club, it will force China to back down", said Edward Alden, a senior fellow at the Council on Foreign Relations.

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