After vowing over the weekend to “never surrender to external pressure”
Beijing has defied President Trump’s demands that it not resort to retaliatory tariffs and announced plans to slap new levies on $60 billion in US goods.
- CHINA SAYS TO RAISE TARIFFS ON SOME U.S. GOODS FROM JUNE 1
- CHINA SAYS TO RAISE TARIFFS ON $60B OF U.S. GOODS
- CHINA SAYS TO RAISE TARIFFS ON 2493 U.S. GOODS TO 25%
- CHINA MAY STOP PURCHASING US AGRICULTURAL PRODUCTS: GLOBAL TIMES
- CHINA MAY REDUCE BOEING ORDERS: GLOBAL TIMES
- CHINA ADDITIONAL TARIFFS DO NOT INCLUDE U.S. CRUDE OIL
- CHINA RAISES TARIFF ON U.S. LNG TO 25% EFFECTIVE JUNE 1
- CHINA TO RAISE TARIFFS ON IMPORTS OF U.S. RARE EARTHS TO 25%
China’s announcement comes after the White House raised tariffs on some $200 billion in Chinese goods to 25% from 10% on Friday (however, the new rates will only apply to goods leaving Chinese ports on or after the date where the new tariffs took effect).
Here’s a breakdown of how China will impose tariffs on 2,493 US goods.
The new rates will take effect at the beginning of next month.
- 2,493 items to be subjected to 25% tariffs.
- 1,078 items to be subject to 20% of tariffs
- 974 items subject to 10% of tariffs
- 595 items continue to be levied at 5% tariffs
In further bad news for American farmers, China might stop purchasing agricultural products from the US, reduce its orders for Boeing planes and restrict service trade.
There has also been talking that the PBOC could start dumping Treasurys (which would, in addition to pushing US rates higher, could also have the effect of strengthening the yuan). Though if China is going to dump Treasuries, will they also be dumping US stocks and real estate?