Just one month ago, Mr. Trump increased taxes on steel and aluminum imports. The Trump administration imposed a tariff of 25 percent on steel and 10 percent on aluminum. According to The Washington Post:
‘What this means is steel made in another country and shipped to the United States will be subject to a 25 percent tax. And imported aluminum will be hit with a 10 percent tax at the U.S. border. These are hefty fees because Trump’s goal is to incentivize U.S. companies to buy steel and aluminum from U.S. producers so the domestic metal industry gets stronger.’
Now, in response to this, China is fighting back and imposing their own tariff of 15 percent on 120 items of products imported from the United States including fruits and related products. In addition, the Chinese government is imposing a 25 percent tariff on eight items of imports including pork and related products from the country.
According to Xinxua:
‘Although in violation of WTO rules, the U.S. measure went into effect in March 23, which has severely undermined China’s interests, according to the statement.
‘China advocates and supports a multilateral trade system, the ministry said, noting that to suspend tariff concession on U.S. imports is a just move to safeguard China’s interests using WTO rules.’
Trump recently announced that he would impose retaliatory tariffs of up to $60 billion in Chinese imports. According to CNBC:
‘The new measures are designed to penalize China for trade practices that the Trump administration says involve stealing American companies’ intellectual property. They will primarily target certain products in the technology sector where China holds an advantage over the U.S.’
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