China has announced it will be raising tariffs on roughly $60 billion worth of U.S. goods beginning midnight (Beijing time) June 1, according to China’s State Council Customs Tariff Commission.
China’s newly increased tariffs largely affect the same goods on which initial tariffs were imposed last fall, and have not been extended to any new set of goods.
The new tariff rate hike is based on four categories of US goods valued at approximately $60 billion. China has levied tariffs on a total of $110 billion worth of US products since the trade war began.
Tariffs on the $60 billion worth of US products went into effect on September 24 last year. Roughly 5,000 items were affected, and they were split into four categories.
On Monday, China announced that:
- Category 1 (includes cotton, machinery, grains) went from 10% to 25%
- Category 2 (includes aircraft parts, optical instruments, certain types of furniture) went from 10% to 20%
- Category 3 (includes corn flour, wine) went from 5% to 10%
- Category 4 (includes certain types of chemical, rare earths, medical equipment like ultrasound and MRI machines) stayed the same at 5%
This is a retaliation: On Friday, the U.S. hiked tariffs from 10% to 25% on $200 billion worth of Chinese exports after trade talks held in Washington failed to produce a breakthrough