USA – China trade war officially kick-off

The USA government on the first hours on 6 July 2018 officially put its 25 per cent tariffs on 818 products from China into effect, which substantially escalated the trade war between the two countries. The tariffs worth USD 34 billion targeted a range of product including water boilers and lathes, industrial robots and electric cars.

In respond, China immediately implemented 25 per cent tariffs on 545 products import from the USA that worth USD 34 billion. On this list are also soybeans, electric vehicles, a range of hybrid electric vehicles, a variety of seafood and pork.

The two countries have also prepared a second list of the products that might face similar tariffs, which including petrochemical product, crude oil and packaging items. Anxiety is building up among players and industry participants are watching out for further action on these second lists.