On May 13, China's Customs Tariff Commission of State Council announced
that China will increase tariffs on the USD60 billion worth of goods from the US
that have been previously imposed tax on, starting from June 1, 2019. A
majority of goods will be subject to an additional tariff rate of 25%, 20% or
10%. Tariffs on the remaining items will stay unchanged at the previous tax
rate of 5%. This is the first fight back from China since the US imposed extra
tax on China’s USD200 billion worth of goods earlier at the beginning of May.
China’s adjustment of tariffs is considered as a
powerful response against the US
It is reported that on May 9, 2019 the US government
announced to raise tariffs on USD200 billion worth of Chinese goods from 10% to
25%, starting from May 10, 2019. This move from the US has deepened the trade friction
between both countries. Given that the US does harm to the benefits of both
countries by violating the mutual consensus made by both countries during consultations
of solution to the trade war, China adjusts tariffs on a part of merchandise from
the US.
The increase of tariffs on USD60 billion worth of
goods from the US is a response to the unilateralism and the trade
protectionism of the US. China hopes that the US can return to the right track
of bilateral economic and trade consultations. China is willing to reach an
agreement that can benefit both countries by making mutual efforts.
Some
agricultural and chemical items involved in the increase of tax
According to the list of tax item, 2,493
items will be involved in an additional rate of 25%.1,078 items will be subject to the
extra rate of 20%, 974 items of 10% as well as 595 items of 5%.
The goods with imposition of 25% tariff will mainly include
lamb, horsemeat, honey, starch, sugar, mango, lime, liquified natural gas,
calcium, sodium sulphate, toluene, methanol, urea, perfume, lip cosmetics, eye
cosmetics, cotton knitting, crocheted men's tops, bone china tableware, laser
printers, tablets and so on.
The goods with imposition of 20% tariff will mostly contain
linseed, Vodka, mineral water, toothpastes, plastic toilet seats and covers,
toilet paper, rivets, springs, internal combustion engines for marine
compression ignition, thermal printers, shredders, bearings and so on.
The goods with imposition of 10% tariff will consist of
frozen sweet corns, roasted peanuts, sodium acetate, first aid kits, drug packs,
gel products specially designed for the medicinal use of human or pets, electric
blankets, rearview mirrors of vehicles, white copper tubes, safety razor blades,
marine outboard ignition engines, fire extinguishers, painting robots, brass
instruments, bowling, baby diapers and so on.
As for the goods at an unchanged extra tariff rate of
5%, magnesium chloride, xylitol, ether, lemon oil, fireworks, firecrackers, cotton
linter pulp, solar water heaters, drilling machine parts of petroleum and natural
gas, 3D printers, stethoscopes, dentures will be included.
For more information
about China’s agrochemical market, please have a look at our resources in Agriculture.