Trade War Intensifies, with China, U.S. Raising Tariffs (Updated)

Last week, China announced that it planned to impose new tariffs ranging from 5 to 10 percent on $75 billion worth of U.S. goods as a retaliatory measure to U.S. President Donald Trump’s threat to impose a 10-percent tariff on $300 billion worth of China-made goods imported into the United States. The U.S. tariff would go into effect on some goods – that  include printers, copiers, and their supplies – on  September 1st. The tariff would go into effect on other goods, such as clothing, in December.

In response to China’s retaliatory tariffs, Trump threatened to declare a national emergency that would result in American businesses freezing their relationships with China. He also announced, via Twitter, that he would raise existing tariffs on two batches of Chinese imports, on a total of $550 billion worth of goods.

However, Chinese Vice Premier Liu He told a state-controlled newspaper today that “China is willing to resolve its trade dispute with the United States through calm negotiations and resolutely opposes the escalation of the conflict,” Reuters first reported, citing a transcript of his remarks provided by the Chinese government.

Meanwhile, Trump has expressed hesitation about imposing the additional tariffs, stating, “I have second thoughts about everything.”

Meanwhile, several copier companies, including Ricoh, Canon, Kyocera, Sharp, and Konica Minolta, have begun shifting some production of their copiers out of China to countries such as Vietnam and Thailand, and HP Inc. has stated it’s also shifting some production.

Update

On August 23rd, President Trump also announced that the United States will increase the tariff on $250 billion worth of Chinese goods. The tariff on these imports will be increased from the current 25 percent to 30 percent. These imports include List 2 and List 3. List 3 includes:

8443.39.20 Electrostatic photocopying apparatus, operating by reproducing the original image via an intermediate onto the copy (indirect process)
8443.39.30 Photocopying apparatus, other than electrostatic, incorporating an optical system
8443.39.40 Photocopying apparatus, other than electrostatic, of the contact type
8443.39.50 Thermocopying apparatus
8443.99.10 Accessory & auxiliary machines intended for attachment to an electrostatic photocopier & which do not operate independent of such copier
8443.99.30 Parts of facsimile machines specified in additional U.S. note 3 to this chapter
8443.99.35 Parts and accessories of facsimile machines

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