- US-China Trade War
U.S. President Donald Trump is firing the biggest shot yet in the global trade war by imposing tariffs on $34 billion of Chinese imports & China today accused the US of starting “the biggest trade war in economic history” .
Why Trade War is taking place b/w US & China ?
The trade war became official after Trump repeatedly said he wanted to reverse the United States’ massive trade deficit with China, which rose to about US$375 billion last year. That number is US$100 billion higher than China’s own calculation.
U.S Trump’s Administration :-
- President Donald Trump’s administration’s 25 per cent tariffs are targeting Chinese products such as industrial machinery, medical devices and auto parts.
- The US is also set to impose 25 per cent tariffs on another $16 billion in Chinese exports later in the year and China has vowed to retaliate against US goods worth a similar amount.
- Trump and his advisers argue the tariffs are necessary to pressure China into abandoning unfair practices such as stealing intellectual property and forcing American companies to hand over valuable technology.
- US President Donald Trump has threatened to target another US$400 billion in Chinese products with tariffs if Beijing continues to hit back.
- The clash with China comes as the Trump administration is also fighting over trade with American allies such as Canada and the European Union.
China’s Response on 25% Tariffs :-
- China has retaliated by imposing a similar 25% tariff on 545 US products, also worth a total of $34bn.