Trade Dispute between US, China Rises


The tariffs focus on products from China's industrial sector including aerospace, information and communications technology, robotics, industrial machinery, new materials and automobiles.

Beijing responded within minutes to Washington's announcement, saying they would impose tariff measures "of the same scale and strength".

President Trump warned that if China retaliates against the US with new tariffs of its own, the U.S. "He understands it's unfair", he said.

The U.S. imports a LOT more Chinese goods than the Chinese import in regards to American goods and its easy to see above. "All the results from the previously reached by the two parties will be invalid". Despite that Beijing's industry development tactics, which are claimed to violate its free-trade pledges and hurt American companies, are straining the official ties between the two countries.

After the United States announcement, China's commerce ministry responded by saying that it would "immediately introduce countermeasures of the same scale and strength", although it did not go into detail.

The tariffs cover 1,102 separate product categories, according to a list from the US Trade Representatives Office.

In all, 818 products representing $34 billion in USA imports will fall under the new tariffs - less than the roughly 1,300 products the administration had initially considered. China will bark back.

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The back and forth set off a wave of worry among trade experts, economists, and investors.

Trump last month imposed 25 percent tariffs on imported steel and 10 percent on aluminum on Canada, Mexico and the European Union, setting the stage for a trade war with America's closest allies.

With the the USA and China exchanging volleys, analysts said the trade fight is likely to continue for months, with little prospect of an agreement before the midterm elections in November.

Meanwhile, Chinese companies use government money to buy US businesses.

"It has also seriously damaged China's legitimate rights and interests and has harmed the interests of China and its people, " Xinhua reported.

China is the largest market for USA soy and the threat of tariffs on exports of the commodity has the potential to whip up trade anxieties in stalwart Republican states. At an event sponsored by The Washington Post, he added, "If you end up with a tariff battle, you will end up with price inflation, and you could end up with consumer debt". "Anti-trade policies, particularly tariffs, act like a tax on consumers and businesses by raising the cost of trade".

"Anything that affects the supply chain is obviously not a great thing", said Kristan Porter, president of the Maine Lobstermen's Association.