Hossen Sohel: President Trump’s additional $200 billion tariffs on Chinese goods began to take effect yesterday as the trade war between the two economic powers continued to escalate, reports news channel WION.
China has decided to retaliate with $60 billion in tariffs on American goods totalling $110 billion with Trump administration’s tariffs set to bite the Chinese economy.
The two countries have already slapped tariffs on $50 billion worth of each other’s goods earlier this year.
The US administration will levy tariffs of 10 per cent on the $200 billion of Chinese products, with the tariffs to go up to 25 per cent by the end of 2018.
The US has targeted Chinese-made voice data receivers, computer memory modules, automatic data processors, and accessories for office equipment such as copiers and banknote dispensers in the latest round of tariffs.
The US administration has however spared Apple and Fitbit products child safety products such as high chairs, car seats and playpens, and certain health-and-safety products such as bicycle helmets, US officials said.
Beijing set its new levies on $60 billion of US goods at 5 and 10 per cent and warned it would respond to any rise in US tariffs on Chinese products accordingly.
China on its part has refused to send its negotiator Vice Premier Liu He for trade negotiation with Trump ramping up tariffs on China and threatening to impose even more duties. Last week Trump had threatened to impose tariffs on virtually all goods if China did not adhere to Washington’s demands which include cut trade deficit with China and buy more from US farmers and manufacturers.
Meanwhile, rating agency Fitch has cut growth estimates for China next year.