As US and China are imposing tariffs on each other’s goods, President Trump announced that US will go one step further, as it will impose tariffs on $200 billion worth of Chinese goods. This comes as an addition to the tariffs on $50 billion of goods from China which are already imposed.
Initially, the US laid out a list of more than 800 strategically important imports from China that would be subject to a 25% tariff starting from 6 July, including cars, Reuters reported. In an official statement, the White House explains:
These tariffs are essential to preventing further unfair transfers of American technology and intellectual property to China, which will protect American jobs. In addition, they will serve as an initial step toward bringing balance to the trade relationship between the United States and China.
However, China did not hold back, and decided to retaliate. Specifically, the Chinese news agency Xinhua said China would impose 25% tariffs on 659 US products, ranging from soybeans and autos to seafood.
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This action seemed to have triggered more measures from the US, as on June 18 Mr. Trump directed the US Trade Representative to identify $200 billion worth of Chinese goods for additional tariffs at a rate of 10%.
These tariffs will go into effect if China refuses to change its practices, and also if it insists on going forward with the new tariffs that it has recently announced. If China increases its tariffs yet again, Mr. Trump noted that US will meet that action by pursuing additional tariffs on another $200 billion of goods.
In a statement, Donald Trump said:
This latest action by China clearly indicates its determination to keep the United States at a permanent and unfair disadvantage, which is reflected in our massive $376 billion trade imbalance in goods. This is unacceptable. Further action must be taken to encourage China to change its unfair practices, open its market to United States goods, and accept a more balanced trade relationship with the United States.
This situation in the global trade market is worrying ECSA. European shipowners expressed their concerns about recent developments on global trade relations, after the US implemented tariffs on EU, Mexico and Canada, while the result of the G7 meeting did not offer a solution.