Trade tensions between the US and China are heating up. This is marked by China's immediate response when the US plans to impose new tariffs on more than 1000 products from China.
China said it would impose 25 percent tariff on 106 products from the US. Among these products are soybeans, cars, and orange juice drinks. The plan was announced by China just hours after the White House releases details about 1,300 products that will be subject to import tariffs of 25 percent.
Products targeted by the US include television and motorcycles made in China. The White House said the plan was a response to China's unfair intellectual property practices.
Mutual repayment between China and the US is causing the European stock market plummeted because of the selling action of investors in an instant. In New York, the Dow Jones index is expected to open lower around 550 points.
Earlier, Beijing said it is strongly opposed the plan of imposition of import tariffs made by the US. China even called the United States act unrealistic and protectionist, and vowed to avenge US policy.
Products targeted by China's import tariffs are worth about 50 billion US dollars by 2017, according to data from the Ministry of Commerce of China. Some US products that will be affected by tariffs are chemical products, some types of aircraft, and corn products.
Additional rates will also apply on imports of whiskey products, cigars, tobacco, some types of meat, oil, and plastic products from the US. Import tariffs will also apply to orange juice, sorghum, cotton, truck, electric vehicles, SUVs, and some wheat.
Economists had previously warned US President Donald Trump of his ties to China. The tariff policy, according to economists, will definitely be reciprocated by China and harm the US as prices at the consumer level will rise.
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