U.S., China Exchange New Tariff Hikes

The U.S. began applying 15% tariffs on Sept. 1 that cover about $110 billion worth of imported Chinese goods.

The new taxes, which are intend to pressure China to accelerate trade talks, target electronics, machinery, apparel, shoes, sporting goods and rubber and plastic products. The White House plans to roll out 15% taxes on another $200 billion or more worth of Chinese goods on Dec. 15.

China responded yesterday with similarly timed levies of 5%-10% on a combined $75 billion worth of crude oil, pharmaceuticals, soybeans and other items. China also is reviving a 25% tariff on most vehicles imported from the U.S.

The new round of U.S. tariffs is in addition to existing 25% levies on about $250 billion worth of Chinese goods that began in May. Those taxes are costing American households an average of more than $800 per year, according to the Federal Reserve Bank of New York.

The U.S. Chamber of Commerce figures that the new tariffs imposed yesterday by the Trump administration will raise the annual cost to households to as much as $1,000.