Beijing / Washington – China has responded to US by increasing the taxes on more than 600 of US goods. Goods worth $34 billion imported by China from the US will be hit due to this. The Chinese Ministry of Commerce further said that additional taxes on imports worth $16 billion from the US will also be later imposed. This thus, seems to be the official declaration of the trade war between US and China.
On Friday, US President, Donald Trump had sternly warned that US will even impose additional taxes if China retaliates. Prior to issuing this warning, Trump had announced of the US having imposed 25% tax on Chinese goods worth around $50 billion. The US President also claimed that these taxes by the US have been imposed to aim at the thefts of US technology and trade malpractices by China. President Trump also claimed that this is being done to bring a trade equilibrium between the US and China.
Giving a grim warning, China had indicated that it will also respond to the US’ declaration in an equivalent measure. Accordingly, China has promptly announced of imposing additional taxes on the US imports. The Chinese Commerce Ministry has published declaration in this regard. ‘The decision taken by the US by neglecting China’s opposition and appeal, will lead to violation of the rules set by the World Trade Organisation. These decisions not only threaten China’s rights and interests, but also harm its trade security’, accused China.
‘The additional taxes on the US import worth $34 billion will be applicable from 6th of July. This will include a majority of agricultural goods. Tax on on fuel and other goods worth $16 billion will be declared later’, informed the Chinese ministry of commerce. It was also clarified that the announcement on Friday included 545 goods imported from the US.
This is the second time in last three months that China has declared trade sanctions against the US. Earlier, in the month of April, China has announced of imposing taxes on a total of 128 US goods. At that time, China had imposed a hefty 25% tax on goods such as, aluminium scrap, meat products and other important goods, while also imposing tax of about 15% on fruits and other agricultural goods.
However during the talks held between the US and China after this decision, both had mutually agreed to avoid taking such measures. But, after the announcement made by the US President on Friday and China’s response to it, it seems that the trade war between the US and China has officially started.