President Trump is not going to stop. He announced new sanctions for exports of goods from China totaling $ 200 billion. Now the tariff is 10%, but it can rise to 25% if the PRC does not give up.
The statement said that Beijing’s trade policy threatened the economic health of the States in the long term.
Duties will become active at the end of this month. If China takes the same measures, the tariff will increase to 25% before the year’s end.
In addition, Donald Trump said that the States could impose other duties worth 267 billion US dollars. In this case almost all exports from China will be affected. Now the volume is 500 billion US dollars per year.
At first, Washington planned to take tough measures and impose a 25% duty on Chinese exports, but ruled out this idea and decided to act slowly.
Even before the statements of the US President were made public, the representatives of the Ministry of Foreign Affairs of the People’s Republic of China stated that they would take the same measures against the United States.
Earlier, America had introduced tariffs on Chinese exports amounting to 50 billion US dollars. China responded by entering the same fees for the same amount.
The new initiative of the States can spoil the negotiations and provoke further development of the conflict.
US Treasury Secretary Steven Mnuchin proposed the idea of negotiations. Beijing was going to send an official group to Washington to prepare the visit of Vice Premier Liu He. But the representatives of the Chinese leadership said unofficially that if the US declared new duties, then there would be no negotiations.
At the moment, duties have affected almost half of the Chinese goods. Given that the volume of exports from the US is significantly less, the Chinese experts recommend reducing supply of raw materials and materials for US companies. This will primarily harm Apple and other technology companies.
Not all American firms are satisfied with the situation. The duties also affect consumers, since they lead to higher prices for the production and hence the final product.
The material was prepared with the participation of Anjela Chromova,
a leading analyst of the brokerage company CT Trade