Just hours after President Trump warned China not to fight the U.S.'s latest tariff hike on Twitter, China's Treasury Department did just that, raising tariffs on thousands of American products worth about $60 billion in annual imports. The Chinese tariff hike, which takes effect June 1, is a direct response to the Trump administration's decision to raise the tariff rate on $200 billion worth of imports from China from 10 to 25 percent on Friday, just hours after the failure of trade negotiations between the two countries.
"China's tariff move is a response to US unilateralism and trade protectionism," the Chinese said in a statement on Monday. "China hopes that the US will return to the right track of bilateral trade negotiations, work with China and meet halfway to reach a mutually beneficial agreement on the basis of mutual respect."
The U.S. is expected to respond to the Chinese announcement by imposing an additional 25 percent on all remaining imports from China later on Monday, marking a further escalation of the trade war that has dragged on for more than a year. Trump has repeatedly expressed dissatisfaction with the trade imbalance between the world's two largest economies, saying the U.S. is being robbed and losing hundreds of billions of dollars in Chinese trade every year. And while the U.S. trade deficit with China actually hit a record high of $419 billion in 2018, neither losing money nor the large trade deficit is necessarily a bad thing for the United States. In fact, the recent increase in the deficit is a sign of strength as a strong U.S. economy and strong dollar boost demand for Chinese goods in the U.S.
Just hours after President Trump warned China not to retaliate against the US's latest tariff hike on Twitter, the Chinese Ministry of Finance did just that by raising the tariffs on thousands of American products worth roughly $60 billion in annual imports. Going into effect on June 1, the Chinese tariff hike is a direct response to the Trump administration's decision to raise the tariff rate on $200 billion worth of imports from China from 10 to 25 percent on Friday, just hours after trade talks between the two countries had broken down.
“China's tariff move is in response to the US unilateralism and trade protectionism,” the Chinese said in a statement issued on Monday. “China hopes that the US will return to the right track of bilateral trade talks, work together with China and meet each other halfway, to reach a win-win and mutually beneficial agreement on the basis of mutual respect.”
The US is expected to respond to the Chinese announcement by levying an additional 25 percent on all remaining imports from China later on Monday, marking another escalation in the trade war that has been dragging on for more than a year now. Trump has repeatedly voiced his discontent with the trade imbalance between the world's two largest economies, stating that the US is being ripped off and losing hundreds of billions of dollars on Chinese trade every year. And while the US trade deficit with China did, in fact, reach a record high of $419 billion in 2018, that money is neither lost nor is the large trade deficit necessarily a bad thing for the United States. In fact, the latest increase in the deficit is a sign of strength, as a strong US economy and a strong dollar boost in demand for Chinese goods in the US
You can find more infographics at Statista
Keep in touch
