Leibowitz on Trade: China Trade War Escalates—U.S. Interests Express Dismay

Trade attorney and Steel Market Update contributor Lewis Leibowitz offers the following update on events in Washington:

On Friday, China announced new tariffs in response to the Trump administration’s new tariffs on $300 billion of imports from China. Effective Sept. 1, China will impose 5 percent or 10 percent tariffs on more than 5,000 tariff lines. The tariffs affect a wide variety of goods. On Dec. 15, the delayed effective date for new U.S. tariffs on imports from China, the Chinese retaliation will principally affect U.S. autos and auto parts imports. China is an important export market for the U.S. auto industry, a signal of the increasing Chinese auto market, which has surpassed the U.S. as the world’s largest. The new China tariffs affect about $75 billion in U.S. exports to China.