Factbox: Tariff Wars – Rights Imposed by Trump and US Trading Partners

(Reuters) – US President Donald Trump announced Sunday that he would increase tariffs, which will drop from 10% to 25% of Chinese imports by the end of the week.

Trump has shaken the global trading order by imposing unilateral tariffs to fight what he calls unfair trade practices from China, the European Union and other major partners United States.

The US government hit China with the highest tariffs, triggering a trade war between the two largest economies in the world. Beijing fought back with tariffs on imports from the United States.

Neither side has increased tariffs since Trump and Chinese President Xi Jinping met in Argentina in November 2018 and agreed to a truce while their teams negotiated the end of the talks. the commercial war.

The following is an overview of the major US tariff and retaliatory actions taken since January 2018.

RATES OF THE UNITED STATES ON CHINA

– 25% tariff on Chinese technology goods, including $ 50 billion worth of machinery, semiconductors, automobiles, aircraft parts and electronic components, imposed on July 6 and August 23 as part of the "Section 301" investigation into Chinese IP practices.

– 10% tariff on Chinese goods, including chemicals, building materials, furniture and some $ 200 billion consumer electronics, imposed on September 24 in response to China's retaliation. The levy on these imports is expected to increase to 25% on May 10th.

– Trump announced on Sunday that it would impose tariffs on an additional $ 325 billion worth of Chinese products. The United States imported just under $ 540 billion worth of Chinese goods in 2018. Thus, tariffs on $ 325 billion added to the $ 250 billion of goods already subject to tax at the end of the year. Import would probably cover all imports in 2019, including cell phones, computers, clothing, footwear and others. consumer products.

CHINESE RATES IN THE UNITED STATES

– 25% tariff on $ 50 billion of US goods, including soy, beef, pork, seafood, vegetables, whiskey and ethanol, imposed on July 6 and August 23 in in retaliation for the first US fees. China has suspended a 25% duty on US auto imports during their trade negotiations. Beijing has taken some US soybean purchases but has not officially suspended these tariffs.

– 5% to 10% tariff on $ 60 billion worth of US goods, including liquefied natural gas, chemicals, frozen vegetables and food ingredients, applied on September 24th.

– Based on the US Census Bureau's 2018 trade data, only about $ 10 billion of US imports would be left in China as a reprisal for any future US tariff. Reprisals could take other forms, such as increased regulatory hurdles for US companies operating in China.

US GLOBAL RATES

– Fees of 25% on imported steel and 10% on imported aluminum, imposed on March 23, 2018 for reasons of national security. Exemptions have been granted to Argentina, Australia, Brazil and South Korea in exchange for quotas, and quota negotiations are continuing with Canada, Mexico and the United States. European Union.

– Customs duties of 20 to 50 percent on imported washing machines imposed on January 22, 2018 as a "global safeguard" measure to protect US producers Whirlpool Corp and GE Appliances, a unit of Chinese company Haier Electronics Group Co Ltd.

– 30% tariff on imported solar panels, imposed on January 22, 2018 as a "global safeguard" measure to protect US producers Solar World, based in Germany, and Suniva, owned by Chinese company Shunfeng International Clean Energy Ltd.

– Trump plans to apply tariffs of approximately 25% on imported cars and parts, based on a US Department of Commerce study to determine whether such imports are threatening the national security of the United States. United States. The new agreement between the United States, Mexico and Canada protects Canadian and Mexican production against such tariffs through a quota system. Trump is committed to not imposing car pricing in Japan and the European Union while trade negotiations with these partners are ongoing.

CANADIAN RATES ON THE UNITED STATES

– On July 1, Canada imposed a $ 12.6 billion tariff on US trade, including steel, aluminum, coffee, ketchup and bourbon whiskey, in retaliation for US tariffs on Canadian steel and aluminum.

MEXICAN RATES ON THE UNITED STATES

– On June 5, Mexico imposed tariffs of up to 25% on US steel, pork, cheese, apples, potatoes and bourbon, in retaliation for US tariffs on Mexican metals.

RATES OF THE EUROPEAN UNION IN THE UNITED STATES

– On 22 June, the European Union imposed import duties of 25% on a $ 2.8 billion import from the United States in retaliation for US tariffs on imports of European steel and aluminum. Targeted US products include Harley-Davidson motorcycles, bourbon, peanuts, blue jeans, steel and aluminum.

INDIAN RATES IN THE UNITED STATES

– India, the world's largest buyer of almonds in the United States, increased tariffs on peanuts and tariffs on various other agricultural products and US iron and steel on June 21, in retaliation for US tariffs on Indian steel.

– Last month, Trump said it would put an end to the preferential trade treatment accorded to India, which would result in US tariffs on imports of up to $ 5.6 billion. If this happens, India should retaliate by applying tariffs on US products.