U.S.-CHINA TRADE WAR CONTINUES TO MOUNT AS U.S. IMPOSES A RECORD 245% TARIFFS ON CHINESE IMPORTS.
The trade war between the United States and China intensified further as the Trump administration overnight announced a massive 245% tariffs on some of the Chinese imported goods. This comes in response to China's recent export restrictions and retaliatory tariffs. Earlier China raised its tariffs on the U.S. to 125 % after Trump raised them on China to 145%.
The United States administration released a fact sheet on Tuesday detailing an executive order to review any national security risks posed by relying on foreign imports of rare earth minerals.
The newly imposed tariffs comprises of
A 125% duty aimed at achieving reciprocity in trade relations.
An additional 20% penalty in response to China's alleged inaction on fentanyl by trafficking in to the US
Further tariffs under section 301 ranging from 7.5% to 100% targeting various Chinese goods.
According to the White house these measures are taken to address national security concerns and trade imbalances . The United States also claimed that the move is a part of Trump's ongoing 'America First Trade Policy.'
Trump has accused China of restricting vital high tech materials. Recently China restricted supplies of six rare earth materials and rare earth magnets. According to the information received these materials are very critical for the military, aerospace and semiconductor industry in the United States of America. On this whopping 245% increase , reactions arose from both sides.
The White House Press Secretary Karoline Leavitt on Tuesday said " The ball is in our court. China needs to make a deal with us. We don't have to make deals with them. In response the Chinese foreign ministry spokesperson Lin Jian accused the United states of threatening and blackmailing China.
He said " If the U.S. truly wants to resolve the issue through dialogue and negotiation, it should stop using maximum pressure and stop threats and blackmails. Instead it should engage in talks with China on the basis of equality and mutual respect."
However, both sides are not looking to back down soon. Although Trump announced a 90 day pause period to talk about negotiations and trade deals but barrying China due to its retaliations. China on the other hand doesn't seem to be bothered by the rising tariffs.
According to a statement from the U.S. " More than 75 countries have already reached out to discuss new trade deals. As a result the individualised higher tariffs are currently paused amid these discussions except for China which retaliated."
The World Trade Organization,WTO has warned that these tariffs could lead to a significant decline in global trade, projecting an 80% drop in the U.S.-China merchandise trade for the year.
These tariffs are expected to have widespread effects across various sectors. Consumers could see higher prices on goods due to the increase in tariffs. As both nations navigate this complex landscape, the long term effects of these policies will unfold in the upcoming months.
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