The trade war between the United States and China officially begins
China has responded to new 25 percent tax brought by Trump on Chinese goods worth US$ 34 billion likewise and started applying 25 percent tax on imported American goods worth US$ 34 billion. The Chinese Ministry of Trade has made an announcement saying “The USA which has violated the rules of WTO (World Trade Organization) has launched the biggest trade war on the history of the economy to date”. The Ministry went on to say “China has promised not to fire the first bullet but we have to respond in order to protect the interests of the people and the fundamental interests of the Country.”
The tax retaliation launched by China for 545 American agricultural items targets production of soybean meal, corn, cotton, chicken, pig, lobster, wine production by groups involved in husbandry and farming and constitute Trump’s electorate, mainly.
Trump had threatened earlier that in case China retaliated he would impose additional tax on Chinese products worth US$ 500 billion. In case, this mutual retaliation moves continue experts are concerned it will inevitably lead to an increase in the prices of many products around the world. Experts also believe the impact of such taxes will be immediate and huge on sectors directly targeted.
