The Trump administration is going ahead with 25 percent tariffs on $16 billion in high-tech imports from China, said the U.S. trade representative’s office on Tuesday. Customs officers will begin collection of the duties on Aug 23.
The package, covering 279 tariff lines, follows the July 6 application of 25 percent tariffs on $34 billion in Chinese products. China responded with an equal-sized package of tariffs on U.S. exports, including soybeans and other farm products. The countries applied tit-for-tat tariffs earlier in the year over U.S. sanctions on imported steel and aluminum. The White House says the combined $50 billion in tariffs is punishment for Chinese piracy of intellectual property.
In a notice in the Federal Register, the administration extended the comment period on its proposed 25 percent tariffs on $200 billion of Chinese products. Originally, the tariff rate was 10 percent but President Trump decided on August 1 to pursue the higher rate. While it allowed more time to file comments on the proposal, the trade representative’s office said it would open a public hearing on the proposal as scheduled on August 20. The hearing might extend past August 23, it said.
For its part, China said it would levy tariffs ranging from 5 percent to 25 percent on $60 billion in U.S. products if the United States proceeds with the proposed tariffs on its $200 billion in goods. The U.S. agricultural attache in Beijing posted an 11-page list of the new targets, said The Hagstrom Report. The list is available here.