US-China trade war is going away very soon. American President Donald Trump has shown his frustration at the stalemate on trade negotiations with China. He announced that an additional 10% tariff will be imposed on $300 billion worth of Chinese imports. President Trump wants to sign the negotiated trade deal on higher tariffs before the start of presidential campaign early next year. But Chinese are not very keen to immediately strike a deal. This situation is really frustrating for president Trump. The new tariffs will come into force on September 01.
President trump expressed his dismay over the delay on trade deal in a tweeter. Trump said, “Our representatives have just returned from China where they had constructive talks having to do with a future Trade Deal. We thought we had a deal with China three months ago, but sadly, China decided to renegotiate the deal prior to signing”.
More recently, China agreed to buy agriculture product[s] from the US in large quantities, but did not do so. Trade talks are continuing, and during the talks the U.S. will start, on September 1st, putting a small additional Tariff of 10% on the remaining 300 Billion Dollars of goods and products coming from China into our Country. This does not include the [$250 billion] already tariffed at 25%.”
China-Us trade war might intensify after the fresh tariffs on Chinese goods. According to some media reports, the Chinese government wants to wait till the next presidential election in November 2020 to sign a trade deal. The Chinese government is not seems in hurry to sign a trade deal immediately. On the other hand, President Trump wants it immediately.
Chinese government will be forced to impose tariffs on some American products in retaliation of US tariffs. This could jeopardise the world trade. This trade war can have serious consequences for the growth of world economy.
The new tariffs will make the smartphones and laptops more expensive, given that many tech companies use components manufactured in China. A report by the Consumer Technology Association published in June found that the new set of tariffs against Chinese imported goods could raise prices of laptops in US nearly 17%.
The US begun to impose tariffs and investment restrictions on Chinese companies in March last year, with Trump stating at the time that an investigation by US Trade Representative Robert Lighthizer had concluded China was using foreign ownership restrictions to require technology transfers from US companies to Chinese organisations, as well as conducting espionage to acquire intellectual property and confidential business information.
The Office of the US Trade Representative released a list in May of more than 3,800 import codes for products that will be subject to new tariffs. A new report claims that the Trump administration’s latest tariff proposal on goods imported from China could raise prices on new laptops by 17 percent in the U.S. On average the report finds that a new laptop would cost $120 more if the tariffs go into effect.
More firms are choosing to move production over higher costs. Tariffs on imported Chinese products cost the US tech industry $1.3 billion in May 2019 alone, according to data from the Consumer Technology Association — and the cost is expected to grow.
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