140th Day Of Lockdown

Maharashtra53560136843518306 Tamil Nadu3086492506805159 Andhra Pradesh2445491547492203 Karnataka1886111055993398 Delhi1461341316574131 Uttar Pradesh126722767212120 West Bengal98459671202059 Bihar8274154139450 Telangana8075157586637 Gujarat71064542382652 Assam5883842326145 Rajasthan5249738235789 Odisha4592731785321 Haryana4163534781483 Madhya Pradesh3902529020996 Kerala3433121832109 Jammu and Kashmir2489717003472 Punjab2390315319586 Jharkhand185168998177 Chhatisgarh12148880996 Uttarakhand96326134125 Goa871259575 Tripura6161417641 Puducherry5382320187 Manipur3752204411 Himachal Pradesh3371218114 Nagaland30119738 Arunachal Pradesh223115923 Chandigarh1595100425 Meghalaya11154986 Sikkim9105101 Mizoram6203230
World America 10 May 2019 US increases tariffs ...

US increases tariffs on Chinese goods; China says it will retaliate

REUTERS
Published May 10, 2019, 3:41 pm IST
Updated May 10, 2019, 4:05 pm IST
China's Ministry said it 'deeply regrets' the US decision, adding that it would take necessary countermeasures, without elaborating.
Trump gave US importers less than five days notice about his decision to increase the rate on the USD 200 billion category of goods to 25 percent. (Photo:AP)
 Trump gave US importers less than five days notice about his decision to increase the rate on the USD 200 billion category of goods to 25 percent. (Photo:AP)

Washington: US President Donald Trump's tariff increase to 25 per cent on USD 200 billion worth of Chinese goods took effect on Friday, and Beijing said it would strike back, ratcheting up tensions as the two sides pursue last-ditch talks to try salvaging a trade deal.

China's Commerce Ministry said it "deeply regrets" the US decision, adding that it would take necessary countermeasures, without elaborating.

 

The hike comes in the midst of two days of talks between top US and Chinese negotiators to try to rescue a faltering deal aimed at ending a 10-month trade war between the world's two largest economies.

Chinese Vice Premier Liu He, US Trade Representative Robert Lighthizer and US Treasury Secretary Steven Mnuchin talked for 90 minutes on Thursday and were expected to resume talks on Friday.

The Commerce Ministry said that negotiations were continuing and that it "hopes the United States can meet China halfway, make joint efforts, and resolve the issue through cooperation and consultation".

 

Also Read: China-US trade talks resume; Trump insists deal 'still likely'

With no action from the Trump administration to reverse the increase as negotiations moved into a second day, US Customs and Border Protection imposed the new 25 per cent duty on the affected US- bound cargoes leaving China after 12: 01 am EDT (0401 GMT) on Friday.

Goods in the more than 5,700 affected product categories that left Chinese ports and airports before midnight will be subject to the original 10 percent duty rate, a CBP spokeswoman said.

The grace period was not applied to three previous rounds of tariffs imposed last year on Chinese goods, which had much longer notice periods of at least three weeks before the duties took effect.

 

Also Read: Received a 'beautiful letter' from Xi, says Trump amid trade tensions

"This creates an unofficial window, potentially lasting a couple of weeks, in which negotiations can continue and generates a 'soft' deadline to reach a deal," investment bank Goldman Sachs wrote in a note.

"Given this detail, the downside to sentiment might be slightly more muted than if the tariff increase came with a 'hard' deadline. This also leaves an opportunity for the two sides to reach an agreement in the next couple of weeks, though challenges remain."

 

Trump gave US importers less than five days notice about his decision to increase the rate on the USD 200 billion category of goods to 25 per cent, which now matches the rate on a prior USD 50 billion category of Chinese machinery and technology goods.

The biggest Chinese import sector affected by the rate hike is a USD 20 billion-plus category of internet modems, routers and other data transmission devices, followed by about USD 12 billion worth of printed circuit boards used in a vast array of US- made products.

Furniture, lighting products, auto parts, vacuum cleaners, and building materials are also high on the list of products subject to higher duties.

 

US stock futures fell and Asian shares pared gains after the US tariff hike. E-mini futures for US S&P 500 slipped, last down 0.5 per cent in volatile trade. MSCI's broadest index of Asia-Pacific shares outside Japan was more than 1 per cent lower. Chinese markets were on midday break when the higher tariffs took effect.

Gary Shapiro, chief executive of the Consumer Technology Association said the tariffs would be paid by American consumers and businesses, not China, as Trump has claimed.

"Our industry supports more than 18 million US jobs - but raising tariffs will be disastrous," Shapiro said in a statement.

 

"The tariffs already in place have cost the American technology sector about USD 1 billion more a month since October. That can be life or death for small businesses and startups that can't absorb the added costs."

Economists and industry consultants have said it may take three or four months for American shoppers to feel the pinch from the tariff hike but retailers will have little choice but to raise prices on a wide range of goods to cover the rising cost of imports before too long, according to economists and industry consultants.

 

Even without the trade war, China-US relations have continued to deteriorate, with an uptick in tensions between the two countries over the South China Sea, Taiwan, human rights and China's plan to re-create the old Silk Road, called the Belt and Road Initiative.

...




ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT