In pivot from previously threatened retaliatory measures, Trump announces $200 billion more in tariffs against China
June 19, 2018
Late in the day on Monday, June 18, President Trump ordered $200 billion in retaliatory tariffs against China, in lieu of a previously discussed $100 billion option. The new plan would institute 10% duties on goods to be determined by U.S. trade officials. This announcement comes as the Trump Administration’s first $50 billion worth of tariffs were met not with statutory and practical changes from the Chinese, but rather an equivalent retaliation.
China pledged to hit back once again with comprehensive countermeasures, “combining quantity and quality.” To that, Trump responded with threats of a further $200 billion in penalties, which would bring the total sum up to $450 billion, about 90% of the products China exported to the United States last year. The Sino-U.S. trade dispute now appears to be a full-blown trade war with no discernable sign of de-escalation.
Monday’s announcement produced panic across global markets. Both Chinese and U.S. stocks, in addition to commodities worldwide, showed their most significant declines in months. Analysts predict that markets will only worsen due to expected investment restrictions on Chinese companies before July 6, the implementation date for the original $50 billion tariff list.
[gdlr_quote align=”center” ]“PESA remains deeply concerned as to the harm these tariffs will inflict on the oil and gas service, supply and manufacturing sector,” PESA President Leslie Beyer said. “Our sector’s continued economic success depends on cost-effective manufacturing and competitive innovation; both will suffer under the new import duties. In addition, these measures create critical gaps in sector supply chains and put millions of American jobs at risk, negating the benefits of tax reform efforts.”[/gdlr_quote]
PESA remains committed to advocating for a more appropriate approach on behalf of the service and supply sector. We will continue to release periodic updates on the situation. For questions or further information, please contact Molly Determan, VP Communications & Member Relations.
PREVIOUS COVERAGE
- Letter from the National Foreign Trade Council to House Committee Leaders – June 18, 2018
- U.S. Imposes Tariffs on $34 Billion of Chinese Goods – June 15, 2018
- Oil and Natural Gas Industry Comments on Section 232 Tariffs – May 18, 2018
- PESA Joins Coalition Outlining Harm From China Tariffs – May 16, 2018
- Oilfield Services and Equipment Sector Tells USTR Proposed Tariffs Would Harm U.S. Manufacturing – May 11, 2018
- Recent PESA Actions Regarding Proposed Steel/Aluminum Tariffs – May 9, 2018
- NAFTA Renegotiations May Be Stalled – May 7, 2018
- PESA Joins Alliance for Competitive Steel and Aluminum Tariffs – April 18, 2018
- Department of Commerce Issues Process for Requesting Product Exclusion from Tariffs – March 20, 2018
- Trump Administration Levies Tariffs on Steel and Aluminum – March 14, 2018
- Trump Administration to Impose Tariffs on Steel and Aluminum – March 1, 2018
