US hits China with new wave of tariffs

International Desk: The US has imposed fresh tariffs on $112bn (£92bn) of Chinese imported goods such as shoes, nappies and food.

The new tariffs are a sharp escalation in the bruising trade war, and could cost households $800 a year.
The move is the first phase of US President Donald Trump's latest plan to place 15% duties on $300bn of Chinese imports by the end of the year.

In response, Beijing introduced tariffs on US crude oil, the first time fuel has been targeted.

If fully imposed, Mr Trump's programme would mean that nearly all Chinese imports - worth about $550bn - would be subject to punitive tariffs.

What was initially a dispute over China's allegedly unfair trade practices is increasingly seen as a geopolitical power struggle.

So far, Washington has imposed tariffs on some $250bn of Chinese goods to pressure Beijing into changing its policies on intellectual property, industrial subsidies, market access, and the forced transfers of technology to Chinese firms.

Beijing has consistently denied that it engages in unfair trade practices, and has retaliated with tariffs on $110bn of US products.

It's the American consumer who will bear the brunt of these fresh tariffs, unlike previous rounds which have hit the manufacturing sector hardest.

Nappies, dishwashers, shoes, clothes, food - looking through the 122-page list of eligible products, it's hard to find something that's not on there.

Many retailers say they have little choice but to pass on the cost to shoppers.

The president of the American Apparel and Footwear Association, Rick Helfenbein, describes the tariffs as like "punishing your daughter for something your son did. It makes no sense".

The next round of tariffs on more clothes and big-ticket items like laptops and iPhones are due in December. Donald Trump says this will help to protect spending during the Christmas season.

By the end of the year, they'll be in place on almost all of the $550bn of goods that the US buys every year from China.

 

Source: Agencies

risingbd/Sept 2, 2019/Mukul