As Tariffs Loom, Trade With China Accelerates

The administration has changed direction in its trade showdown with China. In a message to Chinese officials, the White House said it will finalize by June 15 a list of $50 billion in Chinese goods subject to new 25 percent tariffs.

The proposed levies are the first in a package that could lead to tariffs on a total of $150 billion in goods.

The new stance came as a surprise after U.S. trade negotiators and their Chinese counterparts called a truce last week in a simmering trade conflict. The White House’s action also shocked officials in China and threatens to derail trade talks scheduled for this weekend.

Meanwhile, shipments from the biggest U.S. West Coast ports to Asia have accelerated as companies anticipate restrictions.

Loaded container exports from the ports of Los Angeles and Long Beach jumped 12 percent year-over-year in April.

“Shippers want to get their goods on the high seas and to their final destinations before the gates close on U.S. exports,” said Jock O’Connell, an international trade economist. China represents roughly half of the exports that move through Southern California’s ports, he said.

In China, exports rose 13 percent in April as imports surged 21.5 percent compared with a year earlier.

Source: Wall Street Journal