On August 23, the Customs Tariff Commission of China’s State Council announced the decision to impose approximately $75 billion in additional tariffs on the United States. Beijing’s latest retaliatory tariffs are in response to President Trump’s List 4 Trade Action of $300 billion dollars which USTR published earlier in August.
Mirroring the rollout of U.S. tariffs, the Chinese tariffs will also be installed in two batches. Starting on September 1, tariffs of 5 and 10 percent will affect 5,078 products. Tariffs of 5 and 25 percent on U.S.-made vehicles and auto parts will begin on December 15. Taking the existing duties into account, the total tariffs levied on U.S. cars will soon be as high as 50 percent. Notable U.S. products targeted by the tariffs other than autos include crude oil, soybeans, pork, chicken, wheat, sorghum, cotton and other farm products.
China will begin their second-phase of collecting tariff exemption applications on September 2 and will conclude the process on October 18. Firms in China that import, produce, or use relevant input material are eligible to apply for exclusions, including from the most recent trade action. Details for how to apply can be found here.
Unofficial translations for China’s $75 billion trade action can be accessed below: