September 25, 2018
The tariff-based turmoil between China and the USA is intensifying this week, as both global superpowers impose fresh tariffs and Beijing reportedly calls off trade talks.
As the Nikkei Asian Review reports, the fresh tariffs slapped on products by both sides in this dispute are directing the conflict “into uncharted territory.”
On Monday, the USA imposed tariffs of 10 percent on $200 billion (€170 billion) worth of Chinese products, and China responded with its own tariffs on $60 billion (€51 billion) worth of US goods. China also published a white paper “condemning US trade policy” and reportedly called off trade talks.
President Donald Trump has also threatened to institute 25 percent tariffs on “another $267 billion (€226.9 billion) worth of imports” which “would then cover the entire $505 billion (€429.2 billion) in Chinese imports to the US in 2017.”
China has called off trade talks with the US, according to the media, and this week has published a white paper which describes US trade policies as “bullyism practices”, adding that the Trump administration had “abandoned the fundamental norms of mutual respect and equal consultation that guide international relations”.
However, the white paper also called for both nations to “pursue reasonable solutions” and “enhance mutual trust, promote cooperation, and manage differences.”
President Trump has called for China to “revise what he calls its unfair practices.”
Chinese Premier, Li Keqiang, has been attempting to “maintain investor confidence” with his 19 September announcement that the Chinese currency would not be devalued; he also vowed to “cut taxes and treat foreign and domestic companies equally.”
With relations between the two superpowers rapidly souring, it remains to be seen what the coming weeks will bring in this inflammatory trade-off of tariffs.
Categories : City News