The two largest economies of the world moved one step closer to a trade war following the imposition of increased import tariffs by up to 25 percent on 128 U.S. products by China. the products being taxed include certain fruits and nuts to from frozen pork and wine.
The decision has undoubtedly heightened an already tense trade relation between the two countries following the U.S.’s decision to impose high import tariffs on steel and aluminum.
It was on March 23rd that Chinese authorities had announced plans of imposition of tariffs on U.S. products imported into China and the tariffs announced matched the announced figure of $3 billion. The higher rates would be implemented from Monday following the announcement by the finance ministry of the country late on Sunday.
The U.S. could “say goodbye to the delusion” that China would not retaliate or would only engage in a symbolic reply – as perceived by a section of U.S. government, read an editorial in the widely read Global Times newspaper – appearing soon after the announcement was made.
“Even though China and the U.S. have not publicly said they are in a trade war, the sparks of such a war have already started to fly,” the newspaper said.
The obligations that China had to the World Trade Organization (WTO) of reduction of tariffs on 120 U.S. goods imported into the country was being suspended by it, said the Ministry of Commerce. There would be an increase of 15% in the tariff of those products.
A 25% tariff would be applicable on eight other products that would include pork and scrap aluminum and would get implemented form from April 2.
“China’s suspension of its tariff concessions is a legitimate action adopted under WTO rules to safeguard China’s interests,” the finance ministry said.
Last week, there was turmoil in the global markets a investors feared a full blown trade war between the two countries and now china has essentially escalated the tensions that were initiated by the U.S.
An investigation under Section 301 of the 1974 U.S. Trade Act has led to the announcement by U.S. President Donald Trump announcing separate tariffs on Chinese goods worth $50 billion. The details of that tariff regimen are yet to be announced. Those tariffs would be imposed as the investigations found to be true U.S. allegations that China has been systematically misappropriating the intellectual property rights of American firms – an allegation that has earlier been denied by China.
the official Xinhua news agency said that China had “yet to unsheathe its sword”, referring to the Section 301 investigation.
Those products that China is planning to enhance quality of as a part of its “Made in China 2025” program is expected to be targeted by the next wave of tariffs by Trump, according to the U.S. technology industry officials. China’s “Made in China 2025” program is aimed to enhance its domestic manufacturing sector and introduce more advanced products.
(Source:www.reuters.com)
The decision has undoubtedly heightened an already tense trade relation between the two countries following the U.S.’s decision to impose high import tariffs on steel and aluminum.
It was on March 23rd that Chinese authorities had announced plans of imposition of tariffs on U.S. products imported into China and the tariffs announced matched the announced figure of $3 billion. The higher rates would be implemented from Monday following the announcement by the finance ministry of the country late on Sunday.
The U.S. could “say goodbye to the delusion” that China would not retaliate or would only engage in a symbolic reply – as perceived by a section of U.S. government, read an editorial in the widely read Global Times newspaper – appearing soon after the announcement was made.
“Even though China and the U.S. have not publicly said they are in a trade war, the sparks of such a war have already started to fly,” the newspaper said.
The obligations that China had to the World Trade Organization (WTO) of reduction of tariffs on 120 U.S. goods imported into the country was being suspended by it, said the Ministry of Commerce. There would be an increase of 15% in the tariff of those products.
A 25% tariff would be applicable on eight other products that would include pork and scrap aluminum and would get implemented form from April 2.
“China’s suspension of its tariff concessions is a legitimate action adopted under WTO rules to safeguard China’s interests,” the finance ministry said.
Last week, there was turmoil in the global markets a investors feared a full blown trade war between the two countries and now china has essentially escalated the tensions that were initiated by the U.S.
An investigation under Section 301 of the 1974 U.S. Trade Act has led to the announcement by U.S. President Donald Trump announcing separate tariffs on Chinese goods worth $50 billion. The details of that tariff regimen are yet to be announced. Those tariffs would be imposed as the investigations found to be true U.S. allegations that China has been systematically misappropriating the intellectual property rights of American firms – an allegation that has earlier been denied by China.
the official Xinhua news agency said that China had “yet to unsheathe its sword”, referring to the Section 301 investigation.
Those products that China is planning to enhance quality of as a part of its “Made in China 2025” program is expected to be targeted by the next wave of tariffs by Trump, according to the U.S. technology industry officials. China’s “Made in China 2025” program is aimed to enhance its domestic manufacturing sector and introduce more advanced products.
(Source:www.reuters.com)
