Economy

China Releases List of $60 Billion in Retaliatory Tariffs

JM Ashby
Written by JM Ashby

While they haven't been imposed yet, China has released a list of $60 billion in additional retaliatory tariffs they plan to impose in response to Trump's latest actions.

Among many other things, the new list of tariffs released by China's Ministry of Commerce includes prized American exports such as liquidized-natural gas (LNG) and agricultural products.

“As the total value of goods under tariffs shoots up, China has little choice but to use LNG and others to top up the value,” said Lin Boqiang, professor on energy studies at China’s Xiamen University.

“The U.S. gas industry will be much harder hit by this as China imports only a small volume whereas U.S. suppliers see China as a major future market.” [...]

Other U.S. goods targeted by China in the latest list include semiconductors, some helicopters, small-to-mid-sized aircraft, condoms, iron ore, steel products, roasted coffee, sugar, foods containing chocolate, candies, and even car windscreens.

More:

"The implementation date of the taxation measures will be subject to the actions of the US, and China reserves the right to continue to introduce other countermeasures," China's release said, according to a translation. "Any unilateral threat or blackmail will only lead to intensification of conflicts and damage to the interests of all parties."

It's not much of a mystery what actions Trump will take next so this "major future market" is about to be closed.

It's true that China is close to running out of American exports to impose tariffs on so the next stop will be to cease importing American products entirely wherever applicable.

This demonstrates why we have a trade deficit to begin with, by the way. China is close to running out of American products to retaliate against because we don't export nearly as many things as they do. It's really that simple. And it's not going to change in the way Trump or his supporters think it will.

Our trade deficit will persist and even expand because our economies are aligned in fundamentally different ways. We have a consumer-based economy that imports far more than it exports, while China's economy exports far more ($2.2 trillion) than it imports ($1.2 trillion) each year.

That doesn't mean they're cheating us or we're taking advantage of them; it's just the way modern economies evolve. At some point in the not-too-distant future, the Chinese economy could also become a consumer-based economy like ours and someone else will make their products. Probably robots.

  • muselet

    As I keep saying, China can hurt the US more than the US can hurt China in a trade war.

    If China wants, effectively, to go nuclear against the US, all they have to do is stop exporting stuff here. It would hurt the Chinese economy, but it would devastate ours.

    It’s no fun depending on other countries’ leaders to be the coolly rational ones.

    –alopecia

  • Badgerite

    Right after the Soviet Union imploded the main focus of governments and businesses the world over was the reordering of a new global economy. There was a made rush to develop markets and trade alliances. During the Clinton administration (“it’s the economy, stupid”) the Commerce Secretary Ron Brown traveled the world to encourage and establish trade agreements to benefits American commerce. And it had an impact.
    trump is, and the gop is letting him, engage in a trade war with the rest of the world to no purpose. The rest of the world will continue operating on principles of free trade. The US will be the economy harmed. Not China. And not the rest of the world. It’s been a long time since America was this fffffffing stupid. You would have to go back almost a century or more. Idiots.