After US President Donald Trump announced a fresh round of 10 percent tariffs on nearly $200 billion Chinese imports, China has reverted back strongly by imposing a tariff on $60 billion worth of U.S. products. The new tariffs will go into effect starting September 24.
China’s retaliatory action might likely result in another round of tariffs as warned by Trump. He had warned in a statement on Monday that if China targeted US farmers or blue-collar workers in their measures, “we will immediately pursue phase three, which is tariffs on approximately $267 billion of additional imports.” He also threatened to hike the tariff rate to up to 25 percent by January next year if in case no trade deal is met with Beijing.
The latest round of tariff comes at a time when Chinese officials were getting ready to travel to Washington for new talks aimed at resolving the trade dispute. The negotiations talks between officials of the two countries held earlier this year failed to make much progress.
Last week, the U.S. Treasury Secretary Steven Mnuchin invited Chinese officials to a new round of trade talks, but nothing has been scheduled so far. Now, it remains to be seen if Chinese officials will still go ahead with the negotiations talk plans in the wake of the president’s latest escalation.
The Chinese Ministry of Commerce spokesperson said in a statement that the Trump administration’s decision to impose fresh tariffs was “deeply regrettable.”
“We deeply regret the decision,” the spokesperson said. “China will be forced to take synchronous counter-measures to safeguard our legitimate rights … as well as the global free trade order.”
Well, with the U.S. President threatening to impose tariffs on all Chinese imports, the prolonged trade war between the two largest economies is likely to have a negative impact on the world economy.