Daily Management Review

USA launches the third round of the trade war with China


President of the United States Donald Trump instructed to define a list of Chinese goods worth $ 200 billion for the introduction of additional duties of 10%. The list is to be prepared in advance in case the PRC responds to the promised increase in US customs duties covering imports from China worth $ 50 billion. The Chinese side has already stated that it is not afraid of a trade war and encourages opponents to return "to the reason." Nevertheless, it is unlikely that China will be able to break the rates of the new trade threat.

President of the United States Donald Trump announced readiness to impose additional duties of 10% on the supply of Chinese goods with a total volume of $ 200 billion, the White House said in a statement. "Additional measures are needed to encourage China to change its unfair policies, open the market for US goods, and adopt a more balanced relationship," the American side explains the new trade threat.

This is the third round of confrontation between the countries. Since July 6, the US will increase import duties of $ 34 billion for 818 positions. The Chinese side will respond symmetrically, having prepared fees for the same amount for 545 positions. Later, the American side will prepare the introduction of such a list for another $ 16 billion, China will respond with exactly the same for 114 positions.

In response to the latest threat, the Ministry of Commerce of China posted a statement in which Beijing urges Washington "to return to the path of reason, to stop actions that cause damage to all parties." At the briefing, Foreign Ministry spokesman Geng Shuang said that China will continue to take effective measures to uphold state interests.

However, unlike previous rounds of trade threats, this time the Chinese side is unlikely to be able to make public the response list of American goods, which may be subject to new restrictions: exports of goods from China to the US in 2017 amounted to $ 505.6 billion, The US to China - $ 130.4 billion.

source: reuters.com