US President Donald Trump has confirmed mounting and widespread speculation of his government’s intentions by ordering a further $US200 billion worth of tariffs on imported Chinese goods.
The latest move means over half of all Chinese goods coming into the US are now subject to the duties.
“For months, we have urged China to change these unfair practices, and give fair and reciprocal treatment to American companies,” President Trump said in a statement. “We have been very clear about the type of changes that need to be made, and we have given China every opportunity to treat us more fairly. But, so far, China has been unwilling to change its practices.”
“As President, it is my duty to protect the interests of working men and women, farmers, ranchers, businesses, and our country itself,” Trump added. “My Administration will not remain idle when those interests are under attack.”
In somewhat of a surprise, however, the Government said it would spare Apple’s Watch and other consumer gadgets from the latest round of tariffs, a senior administration official said on Monday. Apple shares still finished down by 2.66 per cent for the day, however, due in large part to the level of uncertainty the latest moves have created.
The final list of goods, yet to be finalised, is likely to contain 300 items, or tariff lines, that have been removed from the list including consumer electronics such as smartwatches, industrial chemicals, and safety products such as bicycle helmets.
Many other big-name companies have not been so lucky, and China’s Ministry of Commerce has vowed to retaliate for the latest attack, with between 85 and 95 per cent of all American imported goods coming into China being subject to higher tariffs.
The Chinese Government has also vowed to walk out of further trade talks if the US goes ahead with these new tariffs.
Of greater concern to most organisations is the scale of the latest round, and while the previous round focused almost entirely on industrial goods, this new announcement is likely to have a far greater effect on consumer goods.
