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China to put 25% tariffs on $16 billion worth of US products

Taxes to be imposed on Aug. 23

LONDON (CNNMoney) - China has announced plans to put tariffs of 25 percent on U.S. products worth $16 billion, the latest move in an escalating trade war.

The Chinese government said in a statement Wednesday that the taxes would be imposed on August 23.

The U.S. products in line for tariffs include chemical items and diesel fuel.

The world's top two economies have repeatedly sparred over trade in recent months, in what experts warn may become a devastating cycle of retaliation.

On Tuesday, the Trump administration unveiled its own list of roughly $16 billion worth of imports from China that will be hit with 25 percent tariffs.

The latest U.S. tariffs on 279 products, including motorcycles, speedometers and antennas, will also take effect August 23.

The Trump administration has accused China of unfair trade practices, and President Donald Trump has long vowed to bring down the United States' trade deficit in goods with Beijing.

In July, the administration imposed 25 percent tariffs on $34 billion in Chinese imports. Beijing, accusing the United States of trade bullying, has retaliated by imposing tariffs on an equal measure of American goods.

The United States and China trade goods and services worth about $650 billion each year, the largest trading relationship in the world between two countries.

But China exports far more to the United States than the other way round, making it more challenging for the country to hit back against U.S. tariffs.

-- Donna Borak and Nanlin Fang contributed reporting.


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