In 2018, we’ve seen the US and China go back and forth on trade tariff threats, as tensions between the two countries rise.
Earlier in the year, Trump imposed trade tariffs of US$50 billion.
The most recent threat was from the US to China, as Trump toyed with the idea of placing another US$200 billion on Chinese imports.
Trump’s newest tariffs
But the threat is no longer. Now it’s just fact.
According to RAW, ‘US President Donald Trump has announced 10 per cent tariffs on an additional $US 200 billion worth of Chinese imports into the United States.’
This is the largest tariff in the trade war that we have seen escalate over 2018. These new tariffs have brought up the number of tariffs on Chinese goods imported by the US to roughly 50%.
24 September is the date set for these tariffs to take effect. 10% is the initial setting, but by the New Year, 1 January 2019, it will rise to 25%, according to Trump.
Why did Trump impose further tariffs?
The decision by the US to impose extra tariffs on China was made because Trump and his officials found that they were subject to ‘unfair policies and practices’ in relation to US intellectual property and tech.
According to RAW ‘This includes the practice of forcing US companies to transfer technology to Chinese counterparts.’
In Trump’s own words:
‘These practices plainly constitute a grave threat to the long-term health and prosperity of the United States economy’.
While some products, like the Apple watch and chemical products, won’t be included in the tariffs, this is a huge move by the US and could lead to ramifications globally.
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