Trump Imposes Tariffs on US$200 Billion Worth Of Chinese Products

As of 22 September 2018,  the Trump administration’s has issued yet another round of tariffs on US$200 billion worth of Chinese products. This could potentially prompt China to retaliate with tariffs on US$60 billion worth of U.S. goods. A move that President Donald Trump has said would incur new duties on another US$267 billion in Chinese imports – essentially covering all goods that the U.S. had imported from China last year.

Amid the escalating trade war and a growing consensus within China that substantive talks will only be possible after the U.S. mid term elections in November, China has called off a planned talk with U.S. officials. This has dampened efforts in diplomacy and could lead to more hostility as the 10 percent tariffs on $200 billion in Chinese goods will increase to 25 percent next January unless China is able to offer a concession.

According to analysts from Bloomberg Intelligence, as the tariffs between China and the U.S. expand, it will spur inflation in the U.S. and leave businesses little time to adapt. This would be especially true if China intends to go forward with tariffs on $60 billion of U.S. goods that include an additional 5 percent duty charge on U.S. products such as computers and textiles and an additional 10 percent on more than 3,500 items including chemicals and liquefied natural gas.

Edward Alden, senior fellow at the Council on Foreign Relations in Washington, has mentioned that although the trade war could spiral beyond control, there is “a window for serious negotiation”. However, he has also added that “The Trump administration must get its position straight though — what does it want from China, and who is empowered as a negotiator by President Trump to bring the deal home? Unless that happens, serious negotiations will be impossible, and the likelihood of continued escalation increases”.

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