TRADE WAR: Trump Fires First Shots, Sets Tariffs On $50 Billion In Chinese Goods
Its official, the trade war between the United States and China has started.
On Friday, Trump laid out a list of more than 800 strategically important imports from China that would be subject to a 25% tariff starting on July 6, including cars.
But China isn’t taking this lying low. It has said it will respond appropriately.
Shortly after Trump’s announcement, China’s Commerce Ministry said it would respond with tariffs “of the same scale and strength” and that any previous trade deals with Trump were “invalid.”
The official Xinhua news agency said China would impose 25% tariffs on 659 U.S. products, ranging from soybeans and autos to seafood.
China’s retaliation list was increased more than six-fold from a version released in April, but the value was kept at $50 billion, as some high-value items such as commercial aircraft were deleted.
Trump said in a statement that the United States would pursue additional tariffs if China retaliates.
Washington and Beijing appeared increasingly headed toward open trade conflict after several rounds of negotiations failed to resolve U.S. complaints over Chinese industrial policies, lack of market access in China and a $375 billion U.S. trade deficit.
“These tariffs are essential to preventing further unfair transfers of American technology and intellectual property to China, which will protect American jobs,” Trump said.
Analysts, however, did not expect the U.S. tariffs to inflict a major wound to China’s economy and said the trade dispute likely would continue to fester.
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