China official announced retaliation to US tariffs hikes from 10% to 25% on USD 200B in Chinese import effective on May 9.

In a statement of the Office of the Customs Tariff Commission of the State Council, China criticized that the above move by the US “led to an escalation of economic and trade frictions, which violates the consensus of China and US to resolve trade differences through consultations”. And, that “harms the interests of both sides and does not meet the general expectations of the international community.”

The Commission announced to “adjust” and raise current tariffs on US imports, effect June 1. For the list of USD 60B tariffs US products, rate will be raised to 25%, 20% or 10%. For those products at 5% tariffs, the rate will be maintained.

Looking at the details, a total of 5140 lines of US products will be affected. Among them, additional 25% will imposed of 2493 lines, additional 20% will be on 1078 lines

Full statement (in Simplified Chinese).

Here is Trump’s own statement:

Today, following seven weeks of public notice, hearings, and extensive opportunities for comment, I directed the United States Trade Representative (USTR) to proceed with placing additional tariffs on roughly $200 billion of imports from China. The tariffs will take effect on September 24, 2018, and be set at a level of 10 percent until the end of the year. On January 1, the tariffs will rise to 25 percent. Further, if China takes retaliatory action against our farmers or other industries, we will immediately pursue phase three, which is tariffs on approximately $267 billion of additional imports.

We are taking this action today as a result of the Section 301 process that the USTR has been leading for more than 12 months. After a thorough study, the USTR concluded that China is engaged in numerous unfair policies and practices relating to United States technology and intellectual property – such as forcing United States companies to transfer technology to Chinese counterparts. These practices plainly constitute a grave threat to the long-term health and prosperity of the United States economy.

For months, we have urged China to change these unfair practices, and give fair and reciprocal treatment to American companies. We have been very clear about the type of changes that need to be made, and we have given China every opportunity to treat us more fairly. But, so far, China has been unwilling to change its practices. To counter China’s unfair practices, on June 15, I announced that the United States would impose tariffs of 25 percent on $50 billion worth of Chinese imports. China, however, still refuses to change its practices – and indeed recently imposed new tariffs in an effort to hurt the United States economy.

As President, it is my duty to protect the interests of working men and women, farmers, ranchers, businesses, and our country itself. My Administration will not remain idle when those interests are under attack.

China has had many opportunities to fully address our concerns. Once again, I urge China’s leaders to take swift action to end their country’s unfair trade practices. Hopefully, this trade situation will be resolved, in the end, by myself and President Xi of China, for whom I have great respect and affection.

Reuters reported that China offered 10m tonnes of tariff-free quota for US soybean imports today. The quota is allocated to major Chinese and international soybean crushers at meeting called by the state planner.

This is seen as follow up actions, in-line with US President Donald Trump’s claim that China agreed to by USD 50B in farm products annually, after trade talks earlier this month. However, after that China has indeed bought at least 480k tones of Brazilian soybeans.