Sat 24 August 2019:
The United States and China exchanged blows Friday as each side increased punitive tariffs on the other, intensifying a trade war that is threatening to engulf the global economy.
In a rapid back-and-forth, Beijing took action against $75 billion in American goods in response to US tariffs announced August 1, and President Donald Trump lashed out in return by increasing existing and planned tariffs on a total of $550 billion in Chinese products.
Trump’s blistering Twitter screeds called into doubt chances for a quick resolution to the trade war between the world’s economic superpowers, which by the end of the year will cover nearly all imports and exports exchanged between the two countries.
Accusing China of “taking advantage of the United States on Trade, Intellectual Property Theft, and much more,” Trump said, “we must Balance this very…. …unfair Trading Relationship.”
Existing 25 percent tariffs on $250 billion in Chinese goods will increase to 30 percent starting October 1, Trump said.
And tariffs on $300 billion in products, due to take effect September 1 at 10 percent, will now be set at 15 percent, he said.
Beijing also announced it would reimpose a 25 percent tariff on US autos and a five percent tariff on auto parts, also starting December 15. China had lifted those tariffs earlier this year as a goodwill measure while trade talks were underway.
Trump already imposed steep tariffs on $250 billion in Chinese goods, with a further $300 billion in imports targeted in the coming rounds.
– China responds –
Beijing has hit back with duties on around $110 billion of US goods — or nearly all of the $120 billion worth of American goods it imported last year.
China’s commerce ministry said it will hit American frozen lobster, frozen chicken feet, peanut butter and 914 other goods with new 10 percent punitive tariffs starting September 1.
Soybeans, crude oil and other energy goods face 5 percent tariffs.
US-made mango juice, electric buses and chemical products face 10 percent duties come mid-December while smaller aircraft, hand pumps and bearings will be hit with 5 percent taxes.
Federal Reserve Chair Jerome Powell warned in a speech Friday that trade tensions were exacerbating the global slowdown and the central bank does not have a “rulebook” for dealing with the fallout.
Think your friends would be interested? Share this story!
