The Chinese government has announced that it would engage in $3 billion worth of tariffs on US imports that would go into effect on Monday, April 2nd. These tariffs affect 128 US products ranging from pork and meat, to fruit and steel pipes. This round of tariffs is in retaliation to U.S. imposed tariffs on Chinese aluminum and steel by the Trump administration from last month.
This news additionally follows the Trump administration’s recent expressed goal of imposing tariffs on nearly $50 billion worth of Chinese goods following an investigation into speculated intellectual property theft from US companies.
U.S. Treasury Secretary Steven Mnuchin has stated that the US and China are engaged in behind the scenes talks to avoid further escalation.
Economists are concerned that this escalation will damage the U.S. economy, with the U.S. National Pork Producers Council going as far as saying that this would negatively impact rural America. The U.S. pork industry sold over $1 billion worth of product to China in the previous year.
The US has exempted a number of close allies from the aluminum and steel tariffs introduced last month. The move has caught the attention of China’s Ministry of Commerce, which shared a statement stating that these exemptions violate World Trade Organization policies that prevent members from discriminating against certain WTO members.
The Chinese government is expected to hold its ground on these tariffs, while expressing that it does not want to engage in a trade war with the United States.
D’Alessio Law Group is closely monitoring all news regarding these tariffs, and will provide updates as they become available.