US – China Trade War Hits $100 Billion
The United States and China have stepped up their ongoing trade war by implementing 25% tariffs on $16 billion worth of goods on each other, totaling the amount of levied products to $100 billion since July.
Beijing retaliated with new tariffs on Thursday after the U.S. administration announced that it would impose collection of extra duties to curb unfair Chinese trade practices.
The latest tariffs imposition were set right before U.S. and Chinese officials resume trade talks in Washington on Wednesday.
China’s retaliatory tariffs is seen to provoke President Trump’s releasing a second $200 billion to $300 billion list of Chinese goods that will be subjected to new US tariffs.
President Trump told Reuters that “he did not anticipate much”.
In another interview he said that reaching an amicable solution on the trade dispute will “take time because China’s done it for too long and they have become spoiled.”
On the other side of fence, China stated that they are looking forward to quiet, steady talks to achieve “a good result on the basis of equality, parity and trust.”
Trump administration is pressuring China to overhaul their economic policies in order to protect US intellectual property, end its industrial subsidy programs and start opening their markets to foreign competitions.
The most recent tariffs targeted electronics, plastics, chemicals, semiconductors and other goods.
Beijing strongly denies Trump’s allegation that they steal foreign companies’ intellectual property rights and states that they strictly adhere to World Trade Organization rules. A statement from Beijing read as follows:
“To safeguard free trade and multilateral systems, and defend its own lawful interests, China will file a suit regarding these tariff measures under the WTO dispute resolution mechanism.”
With the Chinese economy feeling the impact of the ongoing trade war, administration officials have instructed Chinese Media to tone down direct attacks on Trump and cut down on reporting trade war issues in order to avoid stirring panic. “You can’t use trade war in your headline”, one media source claims.
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