US tariffs on Chinese goods worth $34bn signals trade war between major economies

Import tax: The US slapped tariffs on Chinese goods from midnight on July 5
AP
Fiona Simpson6 July 2018

A long-awaited US tax on Chinese imports has signalled a tense trade war with Beijing.

The United States has put a 25 per cent tax on 34 billion dollars (£26 billion) worth of Chinese imports starting from midnight (4am GMT).

China is set to hit back with taxes on an equal amount of US products, including soybeans, lobsters, sport-utility vehicles and whiskey.

The tariffs mark a significant step up in the trade dispute between the world's two biggest economies.

The row has sparked uncertainty on the world's stock markets amid fears it could hurt global trade and growth.

A Chinese investor stands in front stock data at a stock brokers in Beijing
AP

Shanghai put on hold clearing some US imports through customs at its main port, said an official at a company in the coastal city.

There did not appear to be any direct instructions to hold up cargoes, but some customs departments were waiting until they had received official guidance from the central government on imposing hefty import tariffs on hundreds of products, the sources said.

A wine merchant in Shanghai, one of the country's busiest trading hubs, said customs brokers were also slowing the clearance process because of confusion about how and when to implement duties.

"They're holding everything ... because there's uncertainty," he said.

"But overall, this weekend they should be able to identify what the taxes are and how they should be implemented, and they should be processed as normal."

A commodities trader in eastern Shandong province was told by customs at a major northern port that they have slowed the clearance of goods from the United States on Beijing's list.

Delays started at midnight local time on Thursday as agents waited for official word from the central government to enforce the new tariffs, he said.

The General Administration of Customs did not comment on the delays and said the agency will implement the tariffs as announced on Thursday.

The agency that tariffs on US products will take effect immediately after US tariffs on Chinese goods kick in.

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