Wednesday, August 8, 2018

BATTLE US-China Exchange 25% Tariffs on $16 Billion Worth of Goods



The dumb trade battle continues to escalate.

The Chinese Ministry of Commerce has just announced a 25 percent charge on 333 U.S. goods, worth $16 billion in total.

The 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, as well as, 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 25 percent U.S, tariffs will apply to a broad range of Chinese goods including basic semiconductors, electronics, plastics, chemicals and railway equipment.

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, of course, asinine on both sides. It will lower the standard of living in both countries. Even if one side chooses to be a protectionist, it makes sense for the other side to maintain open trade.

-RW  

(via Reuters and CNBC)