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U.S., China, each disclose new tariff proposals

As the U.S. and China escalate hostilities in their trade war, the manufacturing sector on both sides is at risk of becoming collateral damage. New tariff proposals unveiled by the U.S. and China in recent days cover many chemicals and key materials that the two countries trade widely and for which, in some cases, few alternative suppliers exist. Acting on a request from President Trump, the office of the U.S. Trade Representative—the equivalent of the ministry of international trade in other countries—raised from 10% to 25% the custom duties proposed on $200 billion worth of goods that the U.S. imports from China. The U.S. started levying tariffs on Chinese goods this summer in an effort to prompt China to modify business practices that the U.S. deems unfair.The newly proposed U.S. tariffs follow the implementation of a 25% custom duty on $34 billion worth of Chinese goods in early July. The U.S. is also finalizing a separate 25% levy on another $16 billion worth of Chinese merchandise.The American Chemistry Council, the main industry group representing the chemical industry, says the new round of proposed U.S. tariffs would be “devastating for U.S. chemicals manufacturers.” It notes that more than $16 billion of the $200 billion in targeted goods are chemicals. “Small and medium-sized enterprises in particular are at risk of being put out of businesses by a cost increase of that kind.”

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Chemical and Engineering News
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