The trade war between the world’s two largest economies is intensifying. Some American items undergo to import taxes charged by China. The potential of further tariffs from Donald Trump. Beijing made the announcement on February 4 following the US levying a 10% tariff on all Chinese exports. Trump declared on Sunday that all imports of steel and aluminum into the US would be subject to a 25% levy. He said he was preparing to impose duties on other nations while addressing reporters on Air Force One. He did not, however, indicate which nations will be singled out. China had previously imposed tariffs on some U.S. goods, including a 15% import tax on coal and liquefied natural gas.
Additionally, a 10% tariff was also imposed on American crude oil, agricultural machinery, and large-engine vehicles. Last week, Chinese authorities launched an anti-monopoly investigation against Google, one of the top companies in the technology sector. Furthermore, PVH the U.S. owner of designer brands Calvin Klein and Tommy Hilfiger, was added to the so-called “unreliable entity” list. At the same time, China has imposed tariff controls on 25 types of rare earth metals, which are essential components in various electronic products and military equipment.Donald Trump declared that steel and aluminum imports into the US would be due to a 25% tax, just days after an agreement was reached to avoid a 25% tariff on Canada and Mexico.
Similar actions were taken during his first tenure as president, but he later gave several trading partners, such as Canada, Mexico, and Brazil, tariff-free quota benefits. Until the Biden administration assumed office, the European Union import tariff issue was still unresolved. Whether any country will be exempt from the new tariff scheme has not been announced this time. Mr. Trump’s goal is to fulfill his campaign promise of reciprocal tariffs. He had stated that if U.S. products face tariffs abroad, the U.S. would impose the same rate of tariffs in return. Trump has repeatedly claimed that the European Union imposes higher taxes on U.S. car imports than the tariffs the United States collects. Tariffs on European Union goods could be imposed soon, though a deal may be reached with the United Kingdom. Following the latest U.S. tariff implementation, Beijing has accused Washington of making false and unverified allegations regarding fentanyl.
In a complaint filed with the World Trade Organization (WTO), China argued that U.S. import tariffs are “discriminatory and protectionist” and violate trade regulations. However, experts caution that a decision in China’s favor may not come immediately, as the WTO’s dispute resolution panel is not yet fully operational. Trump is expected to speak with his Chinese counterpart, Xi Jinping, though the U.S. president has stated that he is in no hurry to do so. Some of the measures Trump has taken since January 20 may be revised. On Friday, he suspended tariffs on small Chinese packages. An additional 10% tariff had been implemented on February 4, but this suspension will remain in place until sufficient and full tariff revenue collection is ensured.
Source: BBC
