US slaps 25% tariff on $50 billion worth of Chinese goods
United States has slapped stiff 25% tariff on US $50 billion worth of Chinese goods. It has accused China of intellectual property (IP) theft and unfair trade practices. This decision has triggered full-fledged trade war between world’s two largest economies.
The tariffs will be applied in two waves. The first will apply to 818 Chinese goods worth $34 billion and in second wave it will apply to 284 goods worth another $16 billion. The focus of the tariffs is on industrial goods, particularly in areas identified under China’s Made in China 2025 plan designed to encourage growth in particular industries. It generally focuses on products from industrial sectors that contribute to or benefit from “Made in China 2025” industrial policy. It includes industries such as information and communications technology (ICT), aerospace, robotics, industrial machinery, new materials, and automobiles.
US’s decision to impose fresh tariffs on China follows his recent imposition of steep tariffs on steel and aluminium imports from Canada, European Union and Mexico on national security grounds. The EU and Canada are planning to enact retaliatory tariffs starting in July 2018. Mexico has already retaliated with its own tariffs on US goods.
Month: Current Affairs - June, 2018