Trump Administration Outlines Tariffs On China; China Retaliates

Last Thursday, President Donald Trump announced in an executive memorandum his intention to place tariffs on dozens of products exported to the United States from China. While the full product list has not yet been finalized—the Office of the U.S. Trade Representative will publish that list within the next 15 days—the White House fact sheet says aerospace and machinery products are among the products that will face new penalties.

The Trump administration will seek comment from the public before the tariffs take effect. A notice will be published in the Federal Register—likely next week—outlining that process. Last Friday, the Chinese government issued a set of proposed tariffs intended to respond to the Section 232 steel and aluminum penalties, and to the president’s tariffs on other Chinese products. The Chinese tariffs would impact 128 products. The government divided the tariffs into two categories:

• A 15 percent import tariff on 120 products in six categories that include seamless steel pipes, modified ethanol, and a broad range of agricultural products.
• A 25 percent tariff on eight products, including recycled aluminum.

The National Association of Manufacturers has compiled a list of affected products. The Chinese Ministry of Commerce is accepting comments on its proposed tariffs until March 31, 2018.