China’s latest tit-for-tat move in its 10-month trade war with the US will hit some key chemicals such as polymers, aromatics and methanol.
It announced late on Monday that it will raise tariffs on $60bn of US goods from 1 June, in response to the US’ tariff hike on $200bn worth of Chinese goods that took effect on 10 May.
China will impose a higher tariff rate of 25% on imports of toluene, xylene, paraxylene, methanol, purified terephthalic acid (PTA), polystyrene, acrylonitrile-butadiene-styrene (ABS), polyvinyl chloride (PVC) , toluene di-isocyanate (TDI) and methylene diphenyl di-isocyanate (MDI), among others.
These chemicals are currently levied tariffs of 10%.
In a separate announcement issued on Monday night, China’s Ministry of Commerce said that Chinese importers can apply for tariff waivers to mitigate the impact of the trade war on operations.
The Chinese yuan has weakened amid the recent escalation of the US-China trade war.