US boosts tariffs on Chinese goods

White House announced new tariffs on imported goods from China. The announcement primarily increases rates on already existing tariffs. It is said that measures will impact goods worth around $18 billion. A list of updated tariffs can be found below.

New US tariffs on China

• Certain steel, aluminium products tariff rate to increase from 0.0-7.5% to 25% in 2024
• Semiconductor tariff rate to increase from 25% to 50% by 2025
• EV tariff to increase rate from 25% to 100% in 2024
• Lithium-ion EV battery tariff rate to increase from 7.5% to 25% in 2024
• Lithium-ion non-EV battery tariff rate to increase from 7.5% to 25% by 2026
• Solar cell tariff rate to increase from 25% to 50% by 2024

There was no major market reaction to the news. This is mostly due to the fact that the move was already strongly hinted in the media last week. US index futures saw muted reaction at first before moving lower after a few minutes. Chinese index futures moved higher.

S&P 500 futures (US500) pull back after announcement of new US tariffs on China. The index is pulling back following a failed attempt at breaking above the 50-hour moving average (green line). Source: xStation5