The trade war begins between two major economies of the world and the imposition of tariff begins thus more less end to the FTA way of trade and selective tariff to begins in other countries which can give home industries better insulation.
China’s commerce ministry is contemplating targeting 128 American products. Beijing first wants to impose a 15 percent tariff on American steel pipes, fruit and on wine imports, to a total value of $977 million, before introducing a 25 percent tariff on pork and recycled aluminum imports, worth $1.99 billion.
Beijing has announced a series of measures that it plans to implement as a response to President Trump’s new import tariffs, in an escalating trade war between the US and China.
China immediately hit back, announcing that it plans to impose tariffs on US goods, which, last year, had an import value of $3 billion. China’s commerce ministry also threatened to take legal action against the US through the World Trade Organization “to maintain the stability of global trading rules,” hoping that a full-blown trade war can be avoided through dialogue.
“We intend to impose tariffs on certain US imports to balance out the losses caused to Chinese interests by the US tariffs on imported steel and aluminum,”the ministry said, according to Reuters.
“China hopes the United States will pull back from the brink, make prudent decisions, and avoid dragging bilateral trade relations to a dangerous place,” the ministry added.
“If a trade war were initiated by the US, China would fight to the end to defend its own legitimate interests with all necessary measures,” China’s US Embassy said, in a separate statement.
US President Donald Trump has announced 60 billion US dollar tariffs on China for its alleged unfair trade practices. The White House yesterday said the actions were necessary to counter unfair competition from China’s state-led economy. The move is seen as a direct shot in a brewing trade war between the world’s two biggest economies.
Mr Trump directed US Trade Representative Robert E. Lighthizer to announce within 15 days a proposed list of products to be hit with tariff increases. USTR has already identified potential targets 1,300 product lines worth about 48 billion dollars. The President has also asked Treasury Secretary Steven Mnuchin to come up with a list of restrictions on Chinese investment.
Reiterating his use of word “reciprocal”, Mr Trump said it was not good when China charges 25 per cent for a car to go in, and the US charges two per cent for their car to come into the United States.
The US currently has about 500 billion dollars of trade deficit with China. China has forcefully denounced President Trump’s decision to impose tariffs on Chinese goods and accused him of putting the two economies on course for a trade war.
China’s embassy in Washington said in a statement said if a trade war was initiated by the United States, China would fight to the end to defend its own legitimate interests with all necessary measures. The embassy said it urges the US to cease and desist and warned that by endangering China-US trade relations, Washington will eventually end up hurting itself.