WASHINGTON: The President of the United state Donald Trump is preparing for a broadening trade war with China. The Trump administration delivered a list of 10 percent tariffs and impose an additional $200 billion in Chinese goods. As per a senior administration official “The $200 billion figure we’re looking at is roughly equal to their exports to us,”.
This action was taken by the Trump administration following the way of tit for tat, and on president’s threat to respond to China’s recrimination for the initial U.S. tariffs on $34 billion in Chinese products.
That was effected on Friday and would eventually place about half of all Chinese imports under
tariffs.
As per the Administration officials, the main motive of tariff fight is to force China to stop stealing American intellectual property and to discard policies in which U.S. companies have been forced to renounce their trade confidential in return for access to the Chinese market.
According to the Robert Lighthizer, the president’s chief trade negotiator “These practices are an existential threat to America’s most critical comparative advantage and the future of our economy,” Because of this action that has taken by the Trump administration, it will hit consumer products like televisions, clothing, bedsheets and air conditioner. until the end of two months, the new tariffs will not be imposed.
Phil Levy, a former White House economist in the George W. Bush administration said that “This is where a painful situation gets more painful,”
Early reaction to the president’s action was unfavorable. “Tonight’s announcement appears reckless and is not a targeted approach,” said Sen. Orrin Hatch, chairman of the Senate Finance Committee.
However, Beijing has sweared
For responding any kind of U.S. trade action, But, in the last year, China bought about $135 billion in U.S. goods, it will run out of American products to tax before it matches Trump’s latest move.
Apart from this, this was assumed by the officials to retaliate in other ways, hitting U.S. companies in China with the not planned examination, to detain in approving financial transactions and another administrative hassle.