Trade war has been seen as the US raises more than double tariffs on $200bn worth of Chinese goods, in a sharp escalation. The tariffs on affected Chinese goods have risen from 10 per cent to 25 per cent reportedly.
The tariffs kicked which were in overnight have escalated the battle between the two economic powers although the goods already sailing to the US will be spared.
China ‘deeply regrets’ the move and will have to take ‘necessary countermeasures,’ it says and urges to meet it halfway. The move has reached a high-level official from both sides are trying to salvage a trade deal in Washington.
China’s Commerce Ministry said in a statement, “It is hoped that the US and the Chinese sides will work together … to resolve existing problems through cooperation and consultation”, confirming the latest US tariff hike on its website.
There was a little change seen in the Chinese stock market after the deadline passed, with the Hang Seng index trading up 0.6 per cent and the Shanghai Composite 1.5 per cent higher.
The Chinese products including fish, handbags, clothing and footwear, there was 10 per cent imposed duties and were due to rise at the start of the year.
When President Donald Trump flagged the tariff hike on Sunday, the market took a beating earlier this week. Certain businesses and economies have been affected due to the global economic tension. Due to trade wars between the US and China for over the past year and has certainly created vagueness in the global economy.
As President Trump warned he could “shortly” introduce 25 per cent duties on $325 bn of Chinese goods, as well; the situation might become worse.
Even though President Trump has not estimated the impact of tariffs on the US economy, the rise will deal a blow to some American companies and consumers as firms may pass on some of the cost, analysts said.
“It’s going to be a big shock to the economy. Those are all US companies who are suddenly facing a 25% increase in cost, and then you have to remember that the Chinese are going to retaliate,” executive director at the Asian Trade Center, Deborah Elms said.
