Tariff Duel: China Raises Taxes On US $75 Billion, And US $550 Billion Tax Increases.

In August 15, 2019, the US government announced that 10% tariffs were imposed on about 300 billion US dollars imported from China, and two batches were implemented in September 1, 2019 and December 15th. The US side's measures have led to the continued escalation of Sino US economic and trade frictions, which has greatly damaged the interests of China, the United States and other countries, and also seriously threatened the multilateral trading system and the principle of free trade.

In response to the US side's measures, China is forced to take counter measures. According to the Customs Law of the People's Republic of China, the People's Republic of China foreign trade law, the People's Republic of China import and export tariff regulations and other basic principles of international law, with the approval of the State Council, the Customs Tariff Commission of the State Council has decided to impose tariffs of 10% or 5% on 5078 items of tax or about 75 billion dollars originating in the United States. The two batches have been implemented since 12 minutes 01 minutes in September 1, 2019 and 01 points at 12 o'clock in December 15th.

Moreover, in order to implement the consensus of the two heads of state of Argentina, the Customs Tariff Commission of the State Council issued a notice in December 14, 2018, which suspended tariffs on motor vehicles and parts originating in the United States for 3 months from January 1, 2019. In March 31, 2019, the Customs Tariff Commission of the State Council issued a notice to suspend tariffs on cars and parts originating in the United States from April 1, 2019.

In May 9, 2019, the US government announced that since May 10, 2019, tariff rates on goods imported from China for 200 billion US dollars have been raised from 10% to 25%. In August 15, 2019, the US government announced that 10% tariffs would be imposed on about 300 billion US dollars imported from China, and two batches were implemented in September 1, 2019 and December 15th.

In order to safeguard the multilateral trading system and defend its legitimate rights and interests, the Customs Tariff Commission of the State Council has decided to impose a 25% or 5% tariff on the original vehicles and parts originating in the United States since December 15, 2019, according to the laws and regulations of the Customs Law of the People's Republic of China, the People's Republic of China import and export tariff regulations and the basic principles of international law, and approved by the State Council. The Customs Tariff Commission of the State Council has decided to resume the 25% and 5% tariffs on automobiles and parts originating in the United States since December 15, 2019.

Source: Xinhua News Agency

1. Since 12 hours and 01 minutes in September 1, 2019, a tariff of 10% has been added to 270 items of tax goods listed in the first part of Annex 1, and 10% duties have been added to the 646 items of tax goods listed in second part of Annex 1, and the import duties are added to the third items of tax items listed in the 1 third part of the annex.

Two, since 12 hours and 01 minutes in December 15, 2019, the tariff of 10% items of tax items listed in part 2 of Annex 2 has been added to the customs duties of 10% tax items listed in Annex 2 second, and the tariffs on the items that are exported in the 2 2 part of the annex have been added to the customs. The tariff is added to the items of tax items listed in the annex part.

Three, the relevant import tax levy:

Levy tariff duty = customs duty paid price plus tariff rate.

Customs duties = duty payable according to the applicable tax rate plus tariff levy

The import value-added tax and consumption tax are collected according to relevant laws and regulations.

Appendix 1- list 1.Pdf:gss.mof.gov.cn/zhengwuxinxi/zhengcefabu/201908/P020190823604938915640.pdf

Annex 2- listing two.Pdf:gss.mof.gov.cn/zhengwuxinxi/zhengcefabu/201908/P020190823604939266141.pdf

Source: Customs Tariff Commission of the State Council

The Customs Tariff Commission of the State Council also announced that it would resume tariffs of 25% and 5% on car and parts in the US in December 15th.

　　 US News:

After 23 nights in China announced that it would levy tariffs on US $75 billion export goods to the United States, President Trump indicated that it would raise the tariff range of US $550 billion worth of goods exported to China.

In a comprehensive media report, Trump announced on twitter that the import tariff of $250 billion from China will rise to 30% from the current 25% to October 1st. In addition, the tariff rate for the remaining US $300 billion in Chinese exports to the US will increase from 15% to 15% in September 1st. Trump announced the news after closing the market overnight on Friday in the US stock market. The office of the US trade representative also announced on the same day that it would launch public consultation before raising the tariff rate of 250 billion dollars on Chinese products. In addition, Trump publicly urged American companies to leave China and said the US would be better without China.

The Ministry of Commerce responded:

A spokesman for the Ministry of Commerce issued a statement on the announcement by the US side that it would further raise tariffs on Chinese exports to the US. In August 24th, the US side announced that it would raise tariffs on Tariffs of about 550 billion US dollars on Chinese exports to the United States. China firmly opposes this. Such unilateral, bullying trade protectionism and extreme pressure act, contrary to the consensus of heads of state of China and the United States, violating the principle of mutual respect, equality and mutual benefit, seriously undermining the multilateral trading system and the normal international trade order, and will surely take its own fruit. China strongly urges the US side not to misjudge the situation, do not underestimate the determination of the Chinese people, and stop the wrong practices immediately, otherwise all the consequences will be borne by the US side.