Tariffs, tariffs, and more tariffs. The US-China trade war has been fought on the same lines for more than a year now. The last round of taxes that the United States and China levied on each other, came into effect this Sunday.
While, Washington earlier said that it would put 10 per cent taxes on Chinese imports, the nation raised it to 15 per cent – announced earlier last month – on goods worth $300 million. However, Beijing wasn’t taking no for an answer, and retaliated by raising the percentage from 5 to 10 per cent on $75 million worth of US goods, including soybeans and crude oil.
The two world economies first showed signs of some progress, yet talks have remained stalled, since President Donald Trump last cited moving ahead to settle the dispute. The scenario also suggests that the US-China trade war has become more of a blame game, waiting to find out who kneels down first.
In one of his recent statements, President Trump did not convey if he will speak with Chinese President Xi Jinping over the weekend. “I can’t tell you, but we are speaking to China. I can’t tell you whether or not I’m personally speaking to Xi,” he said. However, he did make a remark on the tedious fight ongoing between the two and said, badly managed companies are using tariffs as an excuse for their business struggles.
The additional taxes also come as concerns of recession grow in the US, which Trump administration has portrayed is an ‘overrated’ word to describe the situation. But the US President has still continuously pushed for tax cut reforms, working to counter the same situation.
Worst Yet to Come
Sunday, after the US-China Trade war added new points of conflict to the year-long conflict, the tensions did not only follow an upward trajectory because of the new tariffs, but also due to major proportion of them are scheduled for December 15. As per the list, more than 5000 commodities are scheduled to fall under the same line. Consequently, China has also complied with the pattern and will not take any further action until that date.
“The issue we should really be discussing is to cancel the increased tariffs on $550 billion worth of Chinese goods and to prevent a further escalation of the trade war,” Chinese Commerce Ministry spokesman Gao Feng told reporters Thursday.
The whiplash effect of the war has injured parties on both sides. While Trump looks adamant to play the tax game and make China reel under pressure, the nation has showed signs of dealing with pressure via boosting its domestic morale. However, Chinese customers are still worried about the supply chain links that are reliant upon American companies, and, therefore, the vicious circle commits to cause even more problems in near future.