Commerce Ministry spokesman Gao Feng warned the proposed U.S. tariffs would hit international supply chains, Reuters reported. | Mark Schiefelbein/AP Photo New duties on Chinese goods take effect at midnight

An additional 25 percent tariff on about $34 billion worth of Chinese goods will be imposed as of midnight, government officials confirmed Thursday.

U.S. Customs and Border Protection has been instructed to begin collecting the duties, which President Donald Trump ordered earlier this year after a USTR Section 301 investigation blamed China for the loss of U.S. valuable intellectual property, either through forced technology transfers or outright theft, a spokeswoman for the Office of the U.S. Trade Representative said.


"The additional import duties for Chinese goods covered by the Section 301 action will be effective with respect to goods entered, or withdrawn from warehouse for consumption, on or after 12:01 AM Eastern Standard Time on July 6, 2018," CBP said on its website.

Earlier Thursday in Beijing, Chinese officials said they were prepared to respond with duties on an equivalent amount of exports once the United States imposed its tariffs.

Commerce Ministry spokesman Gao Feng warned the proposed U.S. tariffs would hit international supply chains, including many foreign companies operating in China, Reuters reported.

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The U.S. list of Chinese goods targeted for additional tariffs includes many types of plastics and other intermediate goods used in manufacturing. Some capital goods are also included. The list was deliberately constructed to minimize the impact of tariffs increases on U.S. consumers, U.S. trade officials said.

The Chinese list of U.S. goods for retaliatory action includes soybeans, seafood and other food and agricultural products.

The Trump administration is also preparing to hit another $16 billion worth of Chinese exports with additional duties once it completes a public comment period. That could be as early as August. Beijing has also prepared a list of another $16 billion worth of U.S. goods that it will hit with duties in response to that.

In addition, the conflict could grow from there because Trump has ordered U.S. trade officials to draw up a list of an additional $200 billion worth of Chinese goods to hit with an extra 10 percent duty if China retaliates as expected.



