China Strikes Back in Trade War

China Strikes Back in Trade War

The country has imposed fresh tariffs on $60 billion of US goods.

The US-China trade war has been escalated yet again as China responded to the $200bn worth of tariffs announced by the Trump administration Monday by responding with $60bn of its own duties.

The US duties will apply to almost 6,000 types of exports, making them the biggest round of trade tariffs yet from Washington. They will principally affect fashion accessories, rice, and textiles, and will start at 10% and increase to 25% from the beginning of next year unless the two countries agree a deal.

In return, China will target American goods such as liquefied natural gas. Given that these commodities are overwhelmingly produced in states loyal to the US president, President Trump has accused Beijing via Twitter of seeking influence in upcoming midterm elections.

“There will be great and fast economic retaliation against China if our farmers, ranchers and/or industrial workers are targeted!” he said.

Earlier, he had suggested that this would mean further US tariffs on another $267bn worth of Chinese products, meaning roughly all of China’s exports to the US would be subject to new duties.

The Chinese commerce ministry said it would impose its own latest rash of tariffs from 24 September – the same date the US duties come into effect – although at lower rates than was initially expected.

It will place an additional 5% in tariffs on US products including aircraft, computers, and textiles, and an extra 10% on goods such as chemicals, meat, wheat, and wine.

On Monday, Mr Trump said the latest round of tariffs was in response to China’s “unfair trade practices.”

“We have been very clear about the type of changes that need to be made, and we have given China every opportunity to treat us more fairly. But, so far, China has been unwilling to change its practices,” he said.

2018-10-08T20:48:02+00:00

About the Author:

Paul Imison
error: Content is protected !!