Daily Management Review

China Warns Of Tit-For-Tat Tariffs To Any New US Tariffs


09/06/2018




China Warns Of Tit-For-Tat Tariffs To Any New US Tariffs
China’s commerce ministry issued a warning on Wednesday where the country cautioned the United States that it would b3e forced to undertake retaliatory steps against it if the US goes on to implement any new tariffs on the import of Chinese goods into the US. This is the latest development in the ever escalating trade war between the two largest economies of the world.
 
There was a flutter in the global markets and investors are still waiting with bated breath to see if the US president Donald Trump actually goes ahead with his threat of imposing import tariffs in on Chinese goods worth $200 billion in a third round of tariffs.
 
“If the United States, regardless of opposition, adopts any new tariff measures, China will be forced to roll out necessary retaliatory measures,” Chinese ministry spokesman Gao Feng told a regular news conference.
 
Gao said that the Chinese government would keep a very close watch on the impact of any new trade tariffs on China imposed by the USD and it would undertake strong measures to reduce such impacts on any Chinese or foreign companies that are operational in the country.
 
The proposed third round of tariffs by the Trump administration on Chinese goods worth $200 billion had been open for a public comment and that period came to a close on Thursday midnight according to the local time of Washington. Sources have told the media that the Trump administration is ready to go ahead with the fresh tariffs but there was no confirmation of the time.
 
Industry sources have also issued warnings that if the new tariffs are imposed, it would directly hit a range of consumer products ranging from furniture, lighting products, tires, bicycles and car seats for babies.
 
Both China and the US have imposed tariffs on each other’s goods worth $50 billion in two rounds of tariffs and retaliatory tariffs which has negatively impacted the global financial markets in recent months because of the fear among investors about the uncertainty of the future of the trade war and the degree to which it could escalate in the future. Trump has already said that he is not averse to imposing import tariffs on the entire range of Chinese products into the US worth $500 billion.
 
Analysts say that the strategy of imposing tariffs on Chinese goods is Trump’s method of forcing China to cede to US demands of fair trade practices by China and stopping the alleged stealing of intellectual property by the Chinese. The ultimate aim is to reduce the huge trade deficit that the US has with China which is about $375 billion annually.
 
Global investors are worried that any new tariffs \imposed be \y either of the two largest economies of the world would lead to a full blown trade war between the countries which would have a significant negative impact on global trade and business.
 
(Source:www.reuters.com)






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