China slaps tariffs on US crude imports

The duty will come into force on 1 September, just as the US places new tariffs on China, and leaves both sides with little more to tax

Beijing is striking back against Washington's latest escalation of the trade war by imposing a 5pc tariff on US crude imports. The tax on crude — exempted in previous retaliatory tariffs — is part of a package of duties on $75bn/yr of US goods.

The tariff will take effect on 1 September, the same day the US plans to implement a 10pc tariff on an additional $133bn/yr in imports from China. A further $165bn/yr of Chinese imports will be subject to 10pc tariffs from 15 December, meaning all US imports from China will be affected. Beijing's tariffs will encompass nearly all of the $130bn/yr of goods that it imports from the US.

China announced its countermeasures on 23 August, just a day before the G7 summit in France, where US president Donald Trump plans to tout the strength of the US economy. But the trade war will slow growth in the US and China, with peripheral effects on the global economy. The tariffs in place before the latest escalation were already expected to shave 0.3 percentage points off US GDP growth in 2020, according to analysts at the US Congressional Budget Office.

Beijing says its latest tariffs are "a forced move to deal with US unilateralism and trade protectionism". The comment leaves room for dialogue, but there is no confirmation that trade talks tentatively scheduled between the US and China for early September will proceed. With the bulk of China's imports from the US already subject to retaliatory tariffs, Beijing may be prompted to look for other options — including stronger pushback against US sanctions — to confront what it sees as Washington's uncompromising drive to block China's economic development.

US crude exports to China