US-China trade war: A series of "attacks"
The US President warned that he would impose additional tariffs on $267 billion worth of Chinese goods, meaning all Chinese goods would be taxed.
New tax rates target consumer goods
US President Donald Trump's announcement on September 17 of a 10% tariff on $200 billion worth of imported goods from China has pushed the trade war to a new level. Economists predict that China's retaliation will push up the price of consumer goods in the US and may slow down the growth of the US economy.
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| The US-China trade war. Photo: YTVV |
“For many months, we have been demanding that China change its unfair practices and instead provide fair and reciprocal treatment to American companies. We have made it clear what needs to change, and we have given China opportunities to treat the United States more fairly. But China has shown no intention of changing its practices,” US President Donald Trump said.
President Trump has asked the US Trade Representative to impose a 10% tariff on $200 billion worth of imports from China. With the latest tariff rate, the US will tax more than half of all goods imported from China. The Chinese Ministry of Commerce has responded by announcing tariffs on $60 billion worth of US goods. This means that 85% - 95% of US goods exported to the Chinese market will be taxed.
A senior US government official revealed that the 10% tariff on $200 billion worth of imported goods from China will take effect from September 24 and will increase to 25% from the beginning of 2019. The US government also gives time for US businesses to adjust their supply chains.
The first round of US tariffs on $50 billion worth of goods focused mainly on industrial goods imported from China. Meanwhile, this round of tariffs targets consumer goods. The list of US tariffs this time has changed from the original list announced in July. About 300 items have been removed from the tariff list, including smart watches, industrial chemicals, protective items such as helmets and child safety seats.
Trump warns of imposing tariffs on 100% of Chinese goods
This trade “blow” shows the Trump administration’s tough stance in the trade war with China, despite the US Treasury Department’s recent proposal to negotiate with Beijing. However, according to many sources, China will refuse to negotiate after this new “blow” from Washington.
Trade negotiations with China have so far been fruitless, according to US officials, despite Washington sending clear signals that Beijing needs to take action to reverse its decision to impose new tariffs.
The White House has long maintained that tariffs are necessary to force Beijing to change its economic practices and protect American businesses operating in China. President Trump has even threatened to impose tariffs on an additional $267 billion worth of Chinese imports, meaning all Chinese goods will be taxed.
Economic analysts say that the imposition of tariffs and China’s response will cause prices to escalate for both American businesses and consumers. Accordingly, the scale and speed of investment in the US will decrease, consumers will also tighten their purse strings, creating a potential impact on US economic growth.
US stock markets fell in anticipation of President Trump announcing new tariffs on Chinese goods. The Dow Jones Industrial Average fell 91 points, or 0.35%, when the market closed on September 17./.
