On August 8th, China said that it would impose tariffs on an additional $16 billion (RMB 109 billion) in U.S. autos and energy products, retaliating for the Trump administration’s latest import levies on an equivalent value of Chinese goods. The Chinese counter-move will take effect immediately after the US imposes tariffs on the same amount of Chinese goods on August 23rd. The list of US imports affected by the taxes includes coal, oil, chemicals and some medical equipment.
For its part, China has threatened to ratchet up the tit-for-tat trade war by slapping tariffs on another $60 billions (RMB 409 billion) of American imports. At the same time, Beijing reported a $28.1 billion (RMB 191.62 billion) trade surplus with the US in July, just below the record $28.9 billion (RMB 197.07 billion) seen in June. But it was 11% higher than in the same month last year.
Beijing already has stopped trying to match the U.S. tariffs on a dollar-for-dollar basis, threatening to hit just an additional $60 billion in U.S. imports if the president follows through on his threat to target a further $200 billion (RMB 1363.84 billion) in Chinese products.