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The imposition of a 10-15 percent import tax on some American goods by China will come into effect from today, Monday.
China has announced this tax as a tit-for-tat policy after the U.S. imposed a 10% tax on all Chinese products. This move is the latest escalation in the ongoing trade war between the two largest economies in the world. Beijing has announced that tariffs on February 4, just after the U.S. tariffs went into effect
As per BBC, the new Chinese import taxes include a 15% tariff on U.S. coal and liquefied natural gas, and a 10% tariff on American crude oil, agricultural machinery, and large-engine cars.
In retaliation to the U.S. tariffs, China has also taken other measures, including launching an anti-monopoly investigation into Google and adding U.S. brands like Calvin Klein and Tommy Hilfiger to a blacklist. China has also imposed export controls on 25 rare metals used in many electrical products and military equipment.
These moves come as both sides continue to clash over trade issues. While China has filed complaints with the World Trade Organization (WTO), saying the U.S. actions are unfair, experts believe China may struggle to win the case due to the WTO’s current lack of functioning dispute resolution panels.
In addition, Trump has suspended tariffs on small packages from China for now, until better systems are put in place to process these taxes.
As the trade war intensifies, many are wondering what the next steps will be, and whether the two countries will find a way to work out their differences.
