The US and China Raise Tariffs Again As Trade War Escalates
Just after midnight, both China and the United States imposed tariff increases of 25% on an additional $16 billion worth of goods. China's new tariffs will be levied on US made textiles, bicycles, steel products, autos, and medical equipment.
Negotiations between the nations have been stalled for months, but are set to resume in Washington. But even President Trump admits that an agreement will be difficult to reach in the near term.
Guardian: On Monday, Donald Trump told Reuters he did not “anticipate much” from the negotiations in Washington. The US president said any resolution would “take time because China’s done too well for too long, and they’ve become spoiled”.
But as the trade dispute has escalated, China has placed the blame on the United States.
CNN: "The Chinese Commerce Ministry said in a statement that China "has to continue to make necessary counterattacks." It added that it plans to file a complaint with the World Trade Organization."
Many US companies are worried about the impact on the economy and their bottom line.
CNN: "Plenty of American companies are worried. Many have warned the latest measures would hurt their business, and they would not be able to absorb 25% tariffs without raising prices on American consumers."
"Representatives from the motorcycle industry, electric bicycle makers, food equipment manufacturers, and chemical companies have written to the government or testified in opposition to this latest round of tariffs."
And President Trump has threatened to impose additional tariffs this Fall.
Guardian: "The US trade representative’s office is holding public hearings this week on a proposal for more tariffs of up to 20% on an additional $200bn in Chinese goods. The US has threatened tariffs on all $500bn worth of Chinese exports to the US, an amount Beijing cannot reciprocate. US exports to China last year were worth about $130bn."