TD Securities analysts note that China announced that it will be increasing tariffs in some of the USD 60bn US imports that were already facing higher duties since September.
Key Quotes
“Plans for higher tariffs are seen as a response to the US decision to hike duties on US imports from China on Friday. In the detail, China will raise tariffs to 25% on 2,493 US goods, while 1,078 items will face a higher 20% tariff rate. The rest will continue to have duties in the 5%-10% range that was set last year.”
“These new measures will take effect on June 1st. Despite predisposition for further talks and a likely meeting between Presidents Trump and Xi at next month’s G20 summit, we see a significant risk for all Chinese imports (another $325bn) to be subject to tariffs over the next month or so.”
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