China announced earlier that it had raised its levies on U.S. goods to 125%, up from the previous 84%, but stated that it would "no longer respond" to any further tariff increases from Washington. This suggests that Beijing may begin rolling out non-tariff countermeasures.
Hours after the initial announcement—and about an hour into the U.S. cash session—Bloomberg reported that China's Juneyao Airlines had delayed the delivery of a widebody aircraft from Boeing, according to people familiar with the matter.
The people said Juneyao was supposed to take delivery of the 787-9 Dreamliner in three weeks but will now hold off due to the escalating trade war.
China's non-tariff countermeasures against the U.S. in the deepening trade war are broad and far-reaching and may include the following:
Export Controls and Quotas
Currency Devaluation
Boycotts (State-Inspired)
Licensing & Certification Hurdles
Restricting Market Access
Pressure Big Tech With Cybersecurity & Data Laws
Limiting Cultural Imports
Selling U.S. Treasuries
Early this week, Beijing shifted to non-tariff retaliation, limiting Hollywood film imports, slowing rare earth export shipments, and allowing the yuan to weaken.
This is certainly not the end of the trade war, but one broadening outside the scope of tariffs. This understanding is likely why Goldman has yet to give an "all clear" to clients, as more marked turmoil is expected.
Countdown to the next U.S. company that Beijing targets, if that's delaying orders or restricting access and/or using lawfare.
