A trade war has emerged between the United States and China, which comes after China added a $60 billion to the American products on importation rates. It comes after The United States President Donald Trump planned the taxation of Chinese goods worth $200 billion in the coming financial year. This tit-for-tat confrontation is the latest trade war between the two of the world’s most significant economies. The U.S government said that it would begin charging 10% on the estimated $200 billion worth of Chinese goods from Sept 24th, which was mentioned on Monday. Rates are expected to increase by 25% in the 2018 ending financial year.
On Tuesday, China’s Finance ministry through a statement on its website said that their government is on the pressure to respond to the U.S trade and unilateralism whereby it has no options but to react with its rates. A total of 5,207 U.S goods varying from liquefied natural gas to various types of aircraft together with frozen vegetables and cocoa powder will have rates imposed on them by Beijing. The pair will have the new standards active on the Sept 24th. Chinese goods worth $450 billion have by now had the new levies by the U.S government, which is set to make China change some of its technological transfers, trading patterns, and the high-level industrial regulations.
Some business persons and analysts are worried that this could result in having pressure in the Chinese-based American companies such as Apple and HP. Both countries, however, claim to be open to talks and recently, President Trump claimed that the Chinese government’s move on agricultural products was meant to affect the rural population that supported his presidency.
President Trump, in a statement, also claimed that China was trying to change the U.S election system by targeting farmers, industrial workers and ranchers due to their loyalty to him. China never made a direct statement on this but a short video published by Beijing during summer, made suggestions that farmers would not vote for Trump suppose their incomes were affected by the new trade levies. Trump said that if China undertakes the retaliatory action on U.S farmers, they will immediately set new tariffs of an approximate $267 billion on additional importations. The Vice-chairperson of China’s securities regulator, Fang Xinghai said that Trump was a hard-hitting entrepreneur who tries to pile pressure on China to have the basis of the negotiations. He, however, said that things would not work that way.