Washington: The United States has prepared to further intensify the trade war sparked off with China instead of retreating from it. The United States is expected to soon announce an imposition of 25% tariffs on Chinese imports worth $200 billion. Media published this information by giving the reference of a senior official in the Trump administration. It will be a significant blow to China and further increase the pressure on its economy.
Only last week, President Trump had expressed displeasure over China targeting the US farmers. Trump’s critics have also alleged that the US farmers are bearing the brunt of the anti-Chinese policies of the Trump administration. While responding to these allegations, President Trump criticised the Chinese tactics and indicated that it would be strongly retaliated against. He reminded all through his social media posts that China had earned a whopping $517 billion in the bilateral trade with the United States in 2017.
Subsequently, the Trump administration has now taken steps to impose import taxes on Chinese goods worth $200 billion which may be announced soon. Previously, the Trump administration had imposed 10% tariffs on Chinese products worth $200 billion and another 25% on its goods worth $34 billion. By expanding the scope of this tax to include imports worth $200 billion, the Trump administration is now preparing to deliver a decisive blow to the Chinese economy.
The on-going trade war between the United States and China is intensifying further. Economists have claimed that the United States is at an advantage in it which is evident from the pressure being generated over the Chinese economy as a result of this war. Although, outwardly China is seen to be making big claims, there are clear indications of the Chinese rulers are gradually being brought to their knees in this strife. Economist David Brown too had claimed that the United States is clearly winning the war.
The Chinese economy is export-oriented, and if the exports get affected, China would inevitably have to bear the blow, argued Brown. Therefore, even if the US investors suffer losses in the trade war, the US economy would benefit significantly. Referring to this, US President Trump is consistently pointing out to the American citizens that China had been robbing the country in the bilateral trade for all these years.
China may retaliate against the hike in tariffs on Chinese goods by the United States. However, it is being revealed that the Trump administration had already made preparations to face it. Thus, there is no end in sight to the trade war between the United States and China, not at least in the near future. In fact, the relations between the two countries may only deteriorate further.