China: Retaliatory tariffs announced - Nomura

Analysts at Nomura note that China announced retaliatory tariffs of 5% or 10% on additional $60bn imports from the US, taking effect on 24 September in reaction to the US tariffs.

Key Quotes

“Although President Trump took to Twitter and warned of more retaliatory measures against China around the same time Beijing’s action was announced, as of the time of this writing there has been no official statement released from the Trump administration on a threatened third tranche of tariffs on $267bn imports from China.”

“Beijing’s announcement brings the total amount of US goods subject to Chinese tariffs to about $110bn. Importantly, China chose not to match the US tariff rate of 25% on $200bn imports, and set the rates at 5% or 10% instead. Thus, China’s retaliatory measures appear more measured and consistent with its restrained approach so far in dealing with China-US trade tensions.”