How China fought back against the U.S.'s $50 billion tariff hike

On June 15, 2018, the U.S. government released a list of goods subject to tariffs, and will impose 25% tariffs on about 50 billion U.S. dollars of imports from China, of which tariffs on about 34 billion U.S. dollars of goods will be implemented from July 6, 2018, and at the same time, it began to seek public opinion on the tariffs on about 16 billion U.S. dollars of goods. This measure of the U.S. side violates the relevant rules of the World Trade Organization, runs counter to the *** understanding that has been reached in the consultations between China and the U.S., seriously infringes on our legitimate rights and interests, and threatens the interests of our country and people.

According to the Foreign Trade Law of the People's Republic of China, the Regulations of the People's Republic of China on Import and Export Tariffs, and other laws and regulations, as well as the basic principles of international law, the Tariff Commission of the State Council has decided to impose a 25% tariff on 659 items of about 50 billion U.S. dollars worth of imports originating in the United States, with the imposition of tariffs on 545 items of about 34 billion U.S. dollars worth of goods to be implemented from July 6, 2018, with tariffs imposed on the rest of the goods. tariffs, and the implementation time of the tariff increase on the remaining commodities will be announced separately. The relevant matters are as follows:

I. For 545 items of agricultural products, automobiles, aquatic products and other commodities, the tariff increase will be implemented from July 6, 2018, and the specific scope of the commodities is shown in Schedule 1.

II. For 114 items of commodities such as chemicals, medical equipment, energy products and other commodities, the time of implementation of the tariff increase will be announced separately, and the specific scope of the commodities is shown in Schedule 2.

III. The imported commodities listed in Schedules 1 and 2 originating in the United States shall be subject to a tariff increase of 25% on top of the current mode of taxation and applicable tariff rates, and the current bonded and tax exemption policies shall remain unchanged, and the tariff increase shall not be reduced or exempted.

Fourth, after the imposition of tariffs related to import tax calculation formula:

Tariffs = the amount of tariffs payable calculated in accordance with the current applicable tax rates + duty-paid price × tariff rate of tariffs imposed

Priced fixed-rate commodities imported consumption tax = imported consumption tax tax taxable price × proportional rate of consumption tax

Quantity fixed-rate commodities imported consumption tax = imported quantities ×x flat rate of consumption tax

Compound taxable commodities import link consumption tax = import link consumption tax tax taxable price x proportional rate of consumption tax + imported quantity x flat rate of consumption tax

Ad valorem fixed-rate commodities import link consumption tax tax taxable price = (customs duty-paid price + customs duty) ÷ (1 - proportional rate of consumption tax)

Compound taxable commodities import link consumption tax Taxable Price = (Customs Duty Paid Price + Customs Duty + Quantity Imported × Flat Rate of Consumption Tax)÷(1-Proportional Rate of Consumption Tax)

Import VAT = Import VAT Taxable Price × Import VAT Rate

Import VAT Taxable Price = Customs Duty Paid Price + Customs Duty + Import Consumption Tax