On April 16, the White House issued an update to its tariff rate on China. It said that the 245% rate included various goods. In addition, it combined new fentanyl and reciprocal tariffs.
According to a New York Times report, syringes and needles from China would face 245% tariffs. Is this punitive rate a bluff? The government reversed its “Liberation Day” tariffs with a 90-day pause against nearly 80 countries. Since then, it has been said that countries reached out to the government to discuss the tariffs. However, China was not one of them and would still face a higher rate.
Backdrop
After moving forward with plans to impose steep port fees on China-built vessels, the U.S. eased them. The industry strongly opposed the fees. U.S. Trade Representative Jamieson Greer said that ships and shipping are vital to American economic security. It is also important in the free flow of commerce.
On April 17, the Administration announced a softer port fee. It would levy fees on a net tonnage basis per voyage, instead of cumulative fees at every port the ship called at. The fees would come into effect after 180 days following the notice.
Your Takeaway
The U.S. and China trade war shows no signs of slowing down. The 245% rate is not a bluff and will cause trading volumes between the two countries to fall considerably.