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.
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“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.”