US-China Tariffs: Deadline Looms

Forex News

China and the United States are expected to launch a potentially damaging trade war, but Beijing could hit its rival with tariffs first. China’s threatened tariffs on US$34 billion (S$46.3 billion) of US goods will take effect from the beginning of the day on Friday (July 6), amid worsening trade tensions between the world’s two largest economies.

Starting on Friday, Washington will add up to a 25% tariff on 818 Chinese products, with the potential for another 284 items to be added. China has pledged that in return it will do the same to 545 American products. The White House last month announced plans to slap 25% tariffs on roughly 1.100 goods imported from China, worth $50 billion a year. It had originally proposed the tariffs in April, starting with 1.333 Chinese products. After receiving public feedback, the administration cut 515 imports from the blacklist and added 284 others.

Washington has also threatened Europe with a 20% tariff on car imports while various countries have also already taken retaliatory steps against US tariffs on steels and aluminum products.