China Releases "Retaliation List" To US Tariffs, Will Levy Tariffs On $60BN In US Goods

Just minutes after China appeared to offer Trump an olive branch in the trade wars, when as we reported moments ago it nuked Yuan shorts by hiking forward FX reserve requirements by 20% in the process effectively easing financial conditions in the US by sending the dollar sharply lower (and the Yuan higher), China surprised the market which took the PBOC announcement as a "risk on" signal, by releasing the proposed retaliation list to US tariffs, and announcing it will impose differentiated tariffs on $60 billion in US goods.

In a statement issued late Friday, the State Council, China’s cabinet, said China is preparing to impose duties at levels of 25%, 20%, 10% and 5% on some 5,207 American goods, and will be implemented as soon as the US enacts its own tariffs. Furthermore, the Chinese Government said it reserves the right for additional retaliation measures

Some of the products affected, per Reuters:

  • CHINA GOVT'S NEW PROPOSED TARIFFS ON U.S. GOODS INCLUDE SOYBEAN OIL, PEANUT OIL, CORN OIL, OLIVE OIL, MUTTON, DRIED, SMOKED AND SALTED BEEF, COFFEE, WHEAT FLOUR, SPIRITS; WINE, SEMICONDUCTORS, CHEMICAL PRODUCTS, LNG, SMALL AND MEDIUM-SIZED AIRPLANES, AUTOMOTIVE PARTS, LUMBER

More importantly, the Chinese list includes tariffs on some US aircraft, which may lead to pain for Boeing today, although according to the list only "small and medium-sized" airplanes will be affected.

According to the announcement, the measures are to guard its interest and to keep trade frictions from escalating, although the moment Trump sees that China is responding in kind, he will most likely flip out and demand that the next set of $200BN in tariffs be swiftly implemented.

“The implementation date of the taxation measures will be subject to the actions of the U.S., and China reserves the right to continue to introduce other countermeasures,” the State Council statement said. “Any unilateral threat or blackmail will only lead to intensification of conflicts and damage to the interests of all parties.”

On the news, futures which spiked earlier on the FX reserve requirement increase, have slumped back to almost unchanged, with China effectively negating the risk on effect from its currency intervention.

At the same time, the iShares China large-cap ETF turned negative after pushing modestly in the green earlier.

Comments

Free This Fri, 08/03/2018 - 08:15 Permalink

Mistake China! You peckerwoods are gonna end up paying 100% on our goods, and you can keep all that plastic crap you send over here!

I can't find the list anywhere - gaagle shows zilch?? Too soon?

Dutti DingleBarryObummer Fri, 08/03/2018 - 08:26 Permalink

This is going to be real.

Now is the time to man up and and fight for the future of the US.

Support Trump! He is fighting for the US with a longer term strategy instead of the typical US short term rewards behavior used by most can kicking politicians.

The Chinese expect the US soyboys, pussies and lefties to pressure Trump and his excellent trade-team to back down.

It reminds me of Winston Churchill:

You can always count on Americans to do the right thing - after they've tried everything else.

In reply to by DingleBarryObummer

Mr. Ed Gaius Frakkin'… Fri, 08/03/2018 - 10:50 Permalink

Everyone keeps missing the story here: TARIFFS ARE ABOUT EVERY PARTICIPATING COUNTRY EFFECTIVELY TAXING ITS CITIZENS - YEA! MORE MONEY FOR BUREAUCRATS TO SQUANDER!!!  And the governments... they're thick as thieves, they're all in on it!!!

The stories surrounding it may sound good, but they are mostly BS (and no, I'm not a Trump hater.)  When are people gonna get some horse sense?

In reply to by Gaius Frakkin'…

lock-stick biker_trash Sat, 08/04/2018 - 01:12 Permalink

ONE whackjob obsessed SPAMMER -- with numerous log-ons!!!

•• Free This  (same WHACK JOB -- used to be "Mr Hankey" -- also banned)

•• sanctificado  (DON'T CLICK THE LINKS!!! --  Biblicism SPAMMER -- banned as powow/Wadolt/ravolla/lloll/pier/etc.)

•• More Sun (it's the JOOS!! -- whack job extraordinaire)

•• HopefulCynical

•• Annanuki  (another imaginary friend)

•• Jumanji1959 (another imaginary friend)

•• Adolfsteinbergovich  (another imaginary friend)

•• Cryptopithicus Homme  (another "imaginary friend")

 

spamming ZH for seven years --- dozens and dozens of banned log-ons

 

ONE DEEPLY DISTURBED INDIVIDUAL 

 

Write to the Tylers ::  abuse@zerohedge.com

In reply to by biker_trash

Offthebeach Gaius Frakkin'… Fri, 08/03/2018 - 11:13 Permalink

Income tax, and most others, were when we were, supposedly, poor, and racist primitive savages.  But that was a hundred years ago before the blessings of mass, scientific conditioning via education.  So, in victory we are all cured now.  We are the ones our socialist betters were waiting for.  So there is no need for these taxes.  Like Vietnam, lets declare the left won, and go home, or at least put down our rifles in the war against naked capitalism.  Those leadership cadres in the institutions can be released from joblock to become the experimental woke transgender playwrights, primal feces sculptors, and solo naked travelers that their souls cry to be.  

End the war.  Socialist, come home.  Its over, you, we, won.

 

/S

In reply to by Gaius Frakkin'…

W270 BaBaBouy Fri, 08/03/2018 - 10:15 Permalink

Hey Baboon, did you read the article or you couldn't put down donut holes long enough to read the article. Toy R Us shutting down played a huge part in that number.  As for me I would neuter Amazon so as not to decimate all of these legacy businesses. Because when there is a lack of competition the prices will eventually go up.  By then it will be too late.  

In reply to by BaBaBouy

Capt.Ahab Dutti Fri, 08/03/2018 - 09:27 Permalink

Not a fan of Trump's personality and the majority of his policies. I do, however, support his stance on trade. In a country with as many resources as we have, there is no reason we should not have a large and vibrant manufacturing sector that creates the most advanced machines, to shower curtains. We have lost much of our manufacturing to greed from all players. With these tariffs Trump needs to initiate some incentives to bring factories back to our shores as well as bringing back vocational programs to our schools. Let China and the world go on notice, that we are self-sufficient and they need us more than we need them. 

In reply to by Dutti

all-priced-in Kayman Fri, 08/03/2018 - 13:28 Permalink

Plus about half of the stuff we buy is unneeded crap.

 

I told my wife and daughter - look at the stuff you are throwing away - then ask - why did I buy this shit in the first place?

 

They have excuses - I liked it when I first bought it - but now I want something else - LAME.

 

I keep pushing - and I think I am seeing a little bit of change.

 

 

In reply to by Kayman

geno-econ Capt.Ahab Fri, 08/03/2018 - 10:18 Permalink

Good point, but the concept of maintaining a " Balanced Economy " was discarded in the 70's in favor of a Global Economy based on Comparative Advantages.  Unfortunately, deficit financing,  multinational corporations as well as mass retailers quest for lowest labor rates to maximize profits distorted trade in favor of developing countries with cheap labor.  We are now at a dead end with the realization that continuing deficits, the Service Industry, and Technology Sector which is highly mobile, will not save us.  Problem is without a well thought out game plan we can easily revert to a trade war where everybody suffers ---mostly those who are in debt  or relied on international trade and finance for a living.

In reply to by Capt.Ahab

W270 Capt.Ahab Fri, 08/03/2018 - 10:23 Permalink

So Capt,  the trade and business side of Trump is the real reason he is the right person to save our economy. The players with whom you refereed too, such as the Chamber of Commerce could give a fiddlers Fk about the country.  The greedy bastards have no morals and even less patriotism.  Sad thing is so many of our citizens don't know enough to fend off the indoctrination that is going on the schools and universities. 

In reply to by Capt.Ahab

TeethVillage88s Zero Point Fri, 08/03/2018 - 08:44 Permalink

What does ZH think of Charlie LeDuff story of US Rust belt being the same story as Detroit.  3-7 minutes in.  https://www.youtube.com/watch?v=NT_GOWnMgQM

On Contact: The Deindustrialization of America & Detroit with Charlie LeDuff

- He makes some points about elites getting state money like David Cay Jonston's Free Lunch Book, Mike Illitch and Red Wings Stadium

In reply to by Zero Point

EddieLomax SummerSausage Fri, 08/03/2018 - 09:33 Permalink

And how about those awesome high quality solar panels?

When virtue signalling how green you were first got into fashion Solar panels needed to last nigh on 20 years to start paying off.  But I noticed too that the Chinese moved in, undercut all the European companies and drove them out of the market.

Now I know people who have brought and added solar panels, with 2-3 years most of the panels are dead, total junk, but the nearest competitors are driven into small scale production, they used to be affordable, now no chance.

Pump and dump Chinese style, want sweet and sour sauce with that?

In reply to by SummerSausage

Kayman CatInTheHat Fri, 08/03/2018 - 09:52 Permalink

Goodbye to metals with silica filler. Looks like copper or steel, but has no strength, nor does it conduct properly. One of the reasons appliances, light fixtures, etc, burn up. I am surprised the American insurance companies haven't banned "made in China" in homes.

Goodbye to ball bearings that, at best have 50% of the life of American, Japanese, or European bearings. Bearings that are in nearly all cars under NAFTA. Yes, NAFTA means Chinese bearings are what you are rolling on when parts are assembled in Canadian and Mexican assembly plants. When you have a front wheel bearing failure and die, well, that is a cost of business. Just ask the U.S. Chamber of Foreign Commerce.

And  Chinese Military Intelligence just loves all the information gathering from the Chinese electronics and "Smart" phones you carry. Hell, the CIA can spend all its time working to get rid of Trump and buy info from the Chinese.

 Ask the Clintons how the Chinese got to bribe Americans with American money. Exports.

In reply to by CatInTheHat