The Chinese ministry of commerce Wednesday announced a 25 percent charge on $16 billion worth of U.S. goods. The 333 goods being targeted by China include vehicles such as large passenger cars and motorcycles. Various fuels are on the list, as well as fiber optical cables.
According to CNBC report monitored by business a.m., China is also going after coal, grease, Vaseline, asphalt and plastic products, and recyclables.
China’s announcement comes after the U.S. Trade Representative’s office released a finalized list of $16 billion worth in Chinese goods that will be hit with tariffs. The U.S. charges will take effect on Aug. 23. The latest U.S. list brings the total worth of Chinese goods facing a 25 percent tariff to $50 billion.
“This is tit-for-tat exactly,” said Art Hogan, chief market strategist at B. Riley FBR.
“Our $16 billion comes at a scheduled time, which comes up on the 23rd. China said we see your $16 billion and we’ll match your $16 billion.
“They’ll pretty much match what we do until they have no more levers to pull. The bad news is the trade war fears in China are escalating. The major concern right now in trade is China,” Hogan said.
Tensions between the U.S. and China have been simmering in recent months as the Trump administration takes a more protectionist stance when it comes to trade.
Just last month, tariffs on $34 billion worth of Chinese goods came into effect. Chinese state media has hit back at the U.S. in light of the levies that have been threatened, saying the Asian nation would retaliate.
On July 25, President Donald Trump said China is “being vicious” on trade, noting it is targeting U.S. farmers on purpose.
Commerce said it must retaliate against the U.S. tariffs “to defend the nation’s dignity.”