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Steps in U.S.-China trade conflict

Graphic News

June 18, 2018 -- U.S. President Donald Trump escalated his trade conflict with China Monday, threatening to impose a 10 per cent tariff on $200 billion of Chinese goods in retaliation for China’s decision to raise dollar-for-dollar taxes on $50 billion in U.S. goods.

Trump also threatened to extend tariffs to a further $200bn if Beijing continues to fight back. This would impose duties on $450bn worth of Chinese goods – nearly as much as America imported from China last year.

On Friday, Trump pledged to cut U.S.-China trade deficit by levying a 25 per cent tariff on up to $50 billion worth of Chinese imports, starting from July 6, boosting the trade dispute between the world’s two largest economies.

The U.S. trade dispute, which currently involves China, South Korea, Canada, Mexico and the European Union, has now expanded to include India.

New Delhi will raise duties on 30 products originating in the U.S., including motorcycles, fresh apples and almonds, as it strikes back against Washington’s move to impose higher taxes on Indian steel and aluminium exports.

The move is significant as it comes a day after Commerce Minister Suresh Prabhu returned from the U.S. and just weeks ahead of further talks between the two countries on the issue. The tariffs which will raise $240 million will come into effect on June 21.

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