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Trump going ahead with tariffs on $16B in Chinese imports

Trump going ahead with tariffs on $16B in Chinese imports

However, analysts still expect a less favorable trade balance for China in coming months given it's early days in the tariff brawl.

China said on Wednesday, August 8, it will impose 25% tariffs on a further $16 billion of U.S. goods, making good on its promise to retaliate against new American levies.

John Neuffer, president and CEO of the Semiconductor Industry Association, said in a statement they were disappointed and puzzled why semiconductors remain on the final tariff list.

The new taxes are in addition to 25 percent tariffs that took effect July 6 on $34 billion in Chinese products. After Liu visited Washington later that month, the nations released a joint statement pledging to reduce the US trade deficit with China, among other things.

In a statement on its official website late on Wednesday, China's commerce ministry criticized the USA move as being "unreasonable", saying it had no choice but to adopt the same measure on an equal amount of American goods ranging from fuel and steel products to autos and medical equipment. US Customs will begin collecting duties on 279 product lines ranging from motorcycles to steam turbines and railway cars, the US Trade Representative's Office said in an emailed statement on Tuesday.

The announcement came after the Trump administration followed through with a 25% tariff on an additional $16 billion of Chinese goods Tuesday evening.

USTR is conducting a public comment period for those tariffs, which could reach 25 percent, due to end September 5. Schneider National Carriers Inc. and other firms testified during a hearing July 24-25 in Washington that there are no U.S. manufacturers and that the containers are nearly exclusively made in China. Still, disagreements between the two major economic powers run deeper than just the trade balance and tensions remain over market access, intellectual property, technology transfer and investment.

Mr. Trump has continued to portray tariffs on foreign imports as good for the country, even as many Republicans and traditionally right-of-center groups preach their ills. That's soon enough to be used by Trump as a rallying argument, but late enough so that adverse effects will not occur before January 2019.

Those $16 billion in tariffs complete what is considered President Donald Trump's first round of tariffs on China, totaling $50 billion.

The U.S. economy grew at an annual rate of 4.1 percent in the second quarter of 2018, which pundits believe is likely to slow down in the second half of the year, as fiscal stimulus fades and the Federal Reserve further increases interest rates.