US-China Tariff Update: Dispute Escalates, but Imports of Consumer Goods to the US Remain Unaffected

Executive Summary

• The US is imposing tariffs of 25% on hundreds of categories of goods imported from China. The tariffs are to take effect on July 6 on $34 billion worth of imports. The US tariffs focus on “industrially significant technologies” rather than on consumer goods.
• US plans to impose tariffs on a further $16 billion of Chinese imports will go out for public consultation.
• Passenger cars will be the biggest category of imports to which the new tariffs will apply.
• China has responded by slapping 25% tariffs on $34 billion of imports from the US.