The Chinese government has revived a 25% tariff on imports of US automobiles and a 5% tariff on auto parts, set to take effect on December 15, which some market participants worry could imperil future investments as well as steel and base metals demand.
Chinese tariffs on US-made cars and auto parts were placed on hold in April, but the Chinese government reinstated them on Friday August 23.
Beijing’s decision to implement those tariffs reportedly is retaliation for the United States’ 10% tariff on $300 billion of Chinese goods, announced on August 15, which will be rolled out in two batches on September 1 and December 15, according to China’s announcement.
The Chinese tariffs will not only hit US cars and auto parts but also target more than 5,000 other goods with duties of 5-10%. Some of those trade measures will go into effect on September 1 and some on December 15, mirroring the US tariff schedule.
US President Donald Trump responded to the news on Friday via Twitter.
“We don’t need China and, frankly, would be far better off without them. The vast amounts of money made and stolen by China from the United States, year…