China has imposed tariffs of up to 25 percent on 128 U.S. imports, including U.S. scrap aluminum and wine, after President Trump raised duties on foreign steel and aluminum imports in March.
This story by Reagan Haynes originally appeared in Trade Only Today.
The tariffs affecting some $3 billion of imports kick in on today.
Stocks were lower on Monday, the first trading day of the second quarter, after China’s Ministry of Finance announcement of the tariffs, according to The Street.
Washington says China’s theft of foreign intellectual property is what sparked the dispute; currently international companies operating in China must hand over their intellectual property to do business there, according to the BBC.
The first set of tariffs are relatively mild, but a second has already been announced. There are plenty more American companies to be hit and other nations, especially those in Europe and Asia, could soon find themselves dragged into this conflict, the BBC said.
U.S. scrap aluminum and frozen pork will be subject to a 25 percent additional tariff, on top of existing duties. Several other American foods including nuts, fresh and dried fruit, ginseng and wine will be hit by a 15 percent increase.
China said the new tariffs were a retaliatory measure in light of Trump’s decision to raise duties on imported steel 25 percent and 10 percent on aluminum imports.