US-China Trade Tariffs Come Into Force
The United States will start charging tariffs for Chinese goods worth $34 billion today. The US Customs and Border Protection announced that they will collect 25% of the duty on 818 goods from China, determined in June by the Office of the US Trade Representative.
President Donald Trump said on Thursday that the United States could eventually introduce tariffs on Chinese goods worth more than $500 billion, as the two largest economies of the world reached the beginning of the trade war.
Trump's comment seems to have increased the likelihood of potential retaliation from China. Previously, Trump threatened to impose additional tariffs of $400 billion if China strikes back at the original US tariffs.
Beijing promised to immediately react with an equal number of its own tariffs against American cars, agricultural and other products, but it is unclear how quickly these actions could turn into a total trade war. Earlier, China said that it would not "shoot first" during the trade war with the United States, but its customs agency made it clear on Thursday that Chinese tariffs on US goods will come into effect immediately after US duties on Chinese goods are introduced in action.
China’s central bank said the planned US import tariffs on $50 billion worth of Chinese goods - $34 billion plus a planned follow-on list worth $16 billion - will cut China's economic growth by 0.2%, although the overall impact would be limited.