China and the United States flags fluttered near the Bund before the U.S. Trade Mission meeting, meetings in China on July 30, 2019.
Aly Song | Reuters
Beijing – China “resolutely rejects” additional tariffs on Chinese goods by the United States and will take countermeasures, Commerce Department said in a statement Tuesday.
The ministry said in Chinese that these responsibilities would “harm” the U.S.-China trade relations, and China urged the U.S. to withdraw them, translated by CNBC. Beijing has warned of countermeasures before, but has not explained in detail.
China’s retaliation measures include following the first round of new U.S. tariffs in February Increase the responsibility of certain U.S. energy imports and include two U.S. companies in a list of unreliable entities that may limit their ability to conduct business in Asian countries.
The White House has confirmed that a new duty of 10% of Chinese goods will take effect on Tuesday, which will bring the total amount of new tariffs imposed in just one month to 20%.
Therefore, according to estimates by Nomura’s chief Chinese economist Ting Lu, U.S. President Donald Trump’s average effective tax rate on Chinese goods will reach 33%, higher than 13%, before he starts his latest term in January.
Beijing is a source, according to the Global Times, a state-backed by China. Consider retaliatory tariffs on U.S. agricultural products.
According to data analyzed by Allianz Research, as of 2023, the U.S. exports to Chinese soybeans and other agricultural products accounted for the largest share of U.S. goods, or 1.2%, or 22.3 billion US dollars.
The study shows that oil and gas rank second, with shares ranked second at 1%, or $19.3 billion. Drugs ranked third, at 0.8% or $15.6 billion.
China also launched an annual parliamentary meeting on Tuesday, known as the “two meetings.”
Policymakers will set on Wednesday to reveal annual GDP targets and One year’s fiscal stimulus plan.
