US hikes tariffs for Chinese imports, trade talks stopped.
Trade talks between the U.S. and China broke up Friday with no apparent agreement, and U.S. President Donald Trump asserted that there was “no need to rush” to get a deal between the world’s two biggest economies.
Hours earlier, the Trump administration hiked tariffs on $200-billion worth of Chinese imports to 25 per cent from 10 per cent, escalating tensions between Beijing and Washington. China’s commerce ministry said it would impose “necessary countermeasures” but gave no details.
Trump tweeted Friday that the increased tariffs will bring “FAR MORE wealth” to the U.S., although a study by the Federal Reserve Bank of New York, and Columbia and Princeton universities says the burden of tariffs falls on U.S. consumers and businesses that buy imports.
Some lawmakers have recently expressed concern about the effect of the tariffs on farmers. Trump suggested on Twitter Friday that money from the additional tariffs would allow the U.S. to buy more agricultural goods from U.S. farmers and ship it to “poor & starving” countries.
The increase went ahead even after American and Chinese negotiators briefly met in Washington on Thursday and again on Friday, seeking to end the dispute that has disrupted billions of dollars in trade and shaken global financial markets.
The burden of tariffs falls on U.S. consumers and businesses that buy imports. By the end of last year, those consumers and companies were paying $3 billion a month in higher taxes and absorbing $1.4 billion a month in lost efficiency, according to a study by the Federal Reserve Bank of New York, and Columbia and Princeton universities.
The latest increase extends 25 per cent duties to a total of $250 billion of Chinese imports, including $50 billion worth that were already taxed at 25 per cent before the new hike. Trump said Sunday he might expand penalties to all Chinese goods shipped to the United States.
Beijing retaliated for previous tariff hikes by raising duties on $110 billion of American imports. But regulators are running out of U.S. goods for penalties due to the lopsided trade balance.
Chinese officials have targeted operations of American companies in China by slowing customs clearance for their goods and stepping up regulatory scrutiny that can hamper operations.
The higher U.S. import taxes don’t apply to Chinese goods shipped before Friday. By sea, shipments across the Pacific take about three weeks, which gives negotiators a few more days to reach a settlement before importers may have to pay the increased.
Please contact us for additional details on any shipments you may have coming up that may be impacted. email@example.com