Sep 19, 2018 (China Knowledge) - Days ago Beijing welcomed the invitation by U.S. Treasury Secretary Steven Mnuchin for new round of trade talks amidst Trump administration’s announcement of fresh tariffs on USD 200 billion worth of Chinese goods. On Monday President Donald Trump once again triggered the trade war by declaring 10% tariffs on Chinese imports starting September 24.
China is forced to take countermeasures, said in a statement by China's Ministry of Finance. The Chinese officials have maintained a view that escalation in trade conflict will not benefit anyone. They are interested in having honest and open dialogue to address the tension between two parties. However, with Trump not willing to soften his stance for negotiations, Beijing has announced its plan to impose 5-10% of tariff on U.S. imports starting next Monday.
If Trump continues to pressure China with additional tariffs as high as 25% set for next January American consumers will likely to pay more for these imports, and businesses will face with increasing costs that required Chinese imports for local markets and for re-export. This makes rising inflation imminence; and, hence hamper U.S’s recent recovery from a decade of negative or low economic growth caused by the financial crisis since 2007.
To react to U.S’s aggressive act on current trade tension Beijing will impose tariffs on 5,207 items imported from the U.S., targeting the farming and mining industry goods such as coffee, and industrial chemicals. These were the main industries players that have supported President Trump into the office in 2016.
Speculations surround that there will be new round of trade talks between Washington and Beijing.
Copyright © 2018 www.chinaknowledge.com
Send feedback or comments to: email@example.com
For more news, financial weekly reports, business guides to China and other premium information, subscribe to China Knowledge today: www.chinaknowledge.com
To access our page on Bloomberg, type CKFI