Trump administration to add $16B in tariffs on Chinese goods
Author: Washington Examiner - August 7, 2018 - Updated: August 23, 2018
The Trump administration will impose a 25 percent tariff on an additional $16 billion in Chinese goods, the office of U.S. Trade Representative Robert Lighthizer said Tuesday.
The tariffs — which will hit products like fertilizer, electrical generators and railway freight cars — are the second to go into effect, following the tariffs imposed in July on $34 billion in imports from the communist nation.
The Chinese government has vowed to impose dollar-for-dollar retaliatory tariffs on $16 billion in U.S. products.
President Donald Trump has threatened new duties on as much as $500 billion in Chinese goods. Lighthizer is currently considering an increased 25 percent tariff on $200 billion in products, up from a previously announced 10 percent.
In response, Beijing has threatened to impose 5 to 25 percent tariffs on $60 billion in U.S. goods.
Despite concerns from lawmakers, economists and others over the escalating trade dispute, Trump’s top lieutenants are signaling it is unlikely to end anytime soon.
“They better not underestimate the president,” top White House economic advisor Larry Kudlow said previously of China. “He is going to stand tough.”
Large corporations like Caterpillar have raised costs to mitigate the impact of the new tariffs, while Ford Motor Co., General Motors and others are warning that profits will be lower in 2018 as a result of the Trump administration’s trade agenda.
Several smaller manufacturers, who are unable to pass the cost of the tariffs along to customers, are laying off workers and cutting production as a result of the trade skirmishes with China, the European Union, Mexico and others.