USA and China have recently announced new tariffs and imports from each other on September 18th. This increment is supposed to be an indication of the heightened rivalry between the two countries. The US has imposed tariffs of 10% on $200 billion in Chinese goods. The Chinese side retaliated by having tariffs between 5% and 10% which will apply to $60 billion of imports from the U.S.
“We deeply regret the decision. China will be forced to take synchronous counter-measures to safeguard our legitimate rights … as well as the global free trade order,” said a Chinese official from the Chinese Ministry of Commerce after the official announcement of the tariffs was made by the country of China in retaliation to the tariffs imposed on them.
The ‘tit-for-tat tariffs’ between the two largest economies have unnerved leaders worldwide since they have sparked tensions in the emerging global markets and threatened to bring about a slowdown in other developed economies outside the US. Trump has in fact attacked the European Union in one of his Twitter attacks, claiming that the ‘US has been ripped off by both the Chinese and the European Union’.
President Trump himself has faced pressure and backlash on the tariffs created for American exports. Cabinet officials of the States have argued that in their current format, the tariffs are not expected ‘to be felt’, and that they would actually have investments and wages, for the development towards the strong performance of the US stock market as evidence of the benefits which are gained.
China’s Vice-Premier Liu He may possibly cancel his visit to the U.S. capital next week to restart the negotiations with Treasury Secretary Steven Mnuchin. However, the problem for China still remains, as its exports to the U.S. is four times worth more of its imports from the U.S, said U.S. Commerce Secretary Wilbur Ross.