On Sunday, September 1 US imposes 15% of tariffs over billions of worth of Chinese goods in the US markets.China has said that they are prepared to retaliate, while still urge on continuing talk with US executives. Initially it was just a small dispute between Washington and Beijing over China’s alleged unfair trade practices, but now it’s increasingly becoming a geopolitical struggle for power between the 2 biggest economies.
As of now America has imposed tariffs of over $250 billion of Chinese goods. As retaliation, China has also imposed tariffs over $110 billion worth of American goods. Both of these tariffs are expected to rise as the tensions heats up.
US is about to impose 15% tariffs over $300 billion Chinese goods by the end of this year in two rounds. Out of the two rounds, first is due on 1 September, $150 billion worth of Chinese goods according to analysts. US haven’t clarified any details over the value of the tariffs. This round includes products like meat, cheese, pens and musical instrument. The next wave is due to hit by December and will include clothing and footwear.
Mr. Trump has argued that China is paying the tariffs but industrialists have reacted otherwise and they claim it isn’t right. America and China have been facing issues on industrial front due to the rising trade tensions.
America is expected to raise the existing tariffs to up to 25% and 30%. According to experts, this rate can further escalate to a record high of 45% as the trade tensions keeps on rising. Analysts believe that the tension on economies of America and China is also increasing and it’s evident. Garry Hufbauer said that this trade war against China can potentially cause the US GDP growth to drop by 1% and the impact on china can be even bigger to around 5%.