Trade war fumes as US imposes taxes on Chinese goods

“Unfair trade policy” is what the American President calls the Chinese practices relating to its export. His recent imposition of extreme tariffs on goods worth $200bn has left the country in shock. This is, in fact, the third round of taxes that Trump has put forth and this has targeted more on consumer goods such as rice, handbags, food items, and textiles. It is a surprise that smart chairs and high chairs are exempted from the tariff rise.

Mr. President has also made it clear that if China tends to retaliate, he would elevate the tax slab for further $267bn of the country’s goods. The talks about the officials regarding fair tariff percentages ended back in May. But, there was no proper conclusion on the numbers and the U.S. has ever since been in full swing to begin a trade war with China. This was an actual attempt by Trump to make people buy American products as the heavy taxes will end up taking a toll on the MRP which will subsequently be higher than that of the products made in the US. This way local sellers and businesses will be benefited, Trump assumes. Let’s wait how China reacts to this situation as any proceeding to retaliate will end up in the further imposition of tariffs.