Just as Donald Trump was tweeting additional threats aimed at Beijing after he launched another $200BN in tariffs aimed at the US, warning that “there will be great and fast economic retaliation against China if our farmers, ranchers and/or industrial workers are targeted!”, China’s Ministry of Finance issued a statement disclosing what its planned retaliation would look like.
Here are the highlights, from Reuters and Bloomberg:
- CHINA SAYS NEW TARIFFS ON U.S. GOODS EFFECTIVE AT 1201 LOCAL HOURS ON SEPT 24
- CHINA TO LEVY TARIFFS ON $60B U.S. GOODS
- CHINA SAYS TO LEVY TARIFF RATES RANGING BETWEEN 5 TO 10 PERCENT ON U.S. GOODS
- CHINA SAYS NEW TARIFFS WILL BE LEVIED ON 5,207 U.S. PRODUCTS, UNCHANGED FROM INITIAL PROPOSAL
China also said that if the US insists on raising tariffs rates on Chinese goods (from 10% to 25% or more), China would respond accordingly, but noted that it hopes to stop trade frictions and hold a constructive dialogue.
The full statement, google translated:
According to the “Notice of the Customs Tariff Commission of the State Council on Adding Tariffs to Certain Imported Goods Originating in the United States (Second Batch)” (Announcement of the Taxation Committee [2018] No. 6), the relevant implementation matters are hereby announced as follows:
1. For the goods of the Taxation Commission [2018] No. 6 attached to the list of tariffed goods of the United States and Canada, the customs duty shall be imposed from 12:01 on September 24, 2018, and 2,493 tax items listed in Annex 1 shall be The 1078 tariff items listed in Annex 2 are subject to a 10% tariff, and 5% of the 974 tax items listed in Annex 3 and 662 items of tax items listed in Annex 4 are subject to a 5% tariff.
2. Other matters shall be implemented in accordance with the Notice of the Taxation Committee [2018] No. 6.
The dollar tumbled on the news…
… while US equity futures dropped, fading most of this morning’s gains.
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