China to Impose $75 Billion in Retaliatory Tariffs Against U.S.

In response to the United States Trade Representative’s (USTR) recently announced Section 301 List 4A and List 4B tariffs against Chinese products, China now plans to levy additional tariffs totaling $75 billion on U.S. soybeans, automobiles and oil.

The additional tariffs imposed by China range in degree from 5 to 10 percent. These retaliatory tariffs will serve as an exacting countermeasure to the List 4A and List 4B tariffs imposed by the U.S., given that they will share the same effective dates of September 1st and December 15th.

While President Trump has already made concessions to delay the initial List 4 tariffs, via the splitting of List 4 into two parts, amid recent turbulence in the U.S. economy, it is also important to note that China’s economic production is currently at a 27 year low. Given the perception of deterioration in each market, pundits feel that negotiators on both sides of the issue may be more open to compromise during planned face-to-face visits in September.

Shapiro will continue to monitor the situation and provide updates as they become available.