US President Donald Trump is unwilling to lighten trade pressure created against China right now. Following up earlier import duties on Chinese goods Trump administration on Wednesday indicated a further enhancement of 10 percent tariffs on a list of $200 billion worth of Chinese imports shortly.
When that actually happens, China would definitely have to rethink its stand on doing business with the US on past terms, which put even the biggest economy in the world at a disadvantage.
Naturally, Chinese commerce ministry has expressed shock at this. It has also said that if import duties are again hiked like that, China would have no other recourse than to approach the World Trade Organization. In a statement, it called the U.S. actions ‘completely unacceptable’ and it would hit back against Washington’s escalating tariff measures.
U.S. businesses in China fear it could mean anything from stepped-up inspections to delays in investment approvals and even consumer boycotts.
The $200 billion far exceeds the total value of goods China imports from the United States, which means Beijing may need to think of creative ways to respond to US pressure.
On Tuesday, U.S. officials issued a list of thousands of Chinese imports the Trump administration wants to impose new tariffs upon, including hundreds of food products as well as tobacco, chemicals, coal, steel and aluminum, prompting criticism from some U.S. industry groups.
Last week, Washington imposed 25 percent tariffs on $34 billion of Chinese imports, and Beijing responded immediately with matching tariffs on the same amount of U.S. exports to China. Each side is planning tariffs on a further $16 billion in goods that would bring the totals to $50 billion.>
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