President Donald Trump announced a new round of tariffs late on Monday, slapping a 10% tax on a USD200 billion list of Chinese imports ranging from consumer goods to manufacturing materials. The new tariffs, effective September 24, will rise to 25% by January 1. He announced “Following seven weeks of public notice, hearings, and extensive opportunities for comment, I directed the United States Trade Representative (USTR) to proceed with placing additional tariffs on roughly USD 200 billion of imports from China. The tariffs will take effect on September 24, 2018, and be set at a level of 10% until the end of the year. On January 1, the tariffs will rise to 25%. Further, if China takes retaliatory action against our farmers or other industries, we will immediately pursue phase three, which is tariffs on approximately USD 267 billion of additional imports.”
He said “For months, we have urged China to change these unfair practices, and give fair and reciprocal treatment to American companies. We have been very clear about the type of changes that need to be made, and we have given China every opportunity to treat us more fairly. But, so far, China has been unwilling to change its practices. To counter China’s unfair practices, on June 15, I announced that the United States would impose tariffs of 25% on USD 50 billion worth of Chinese imports. China, however, still refuses to change its practices – and indeed recently imposed new tariffs in an effort to hurt the United States economy. As President, it is my duty to protect the interests of working men and women, farmers, ranchers, businesses, and our country itself. My Administration will not remain idle when those interests are under attack.”
The move marks a new escalation of the ongoing trade tensions between Beijing and the US that began this summer when Trump imposed a 25 percent tariff on steel and aluminum imported from China, the world’s second-largest economy, to punish that country for what Trump considers to be unfair trade practices.
Source : STRATEGIC RESEARCH INSTITUTE, STEELGURU
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