China Hits Back at US with $60bn of New Tariffs
Image via UN Geneva/Flickr CC
The latest moves represent a new step towards a full-scale trade war between the world’s two biggest economies. Further escalation is deemed likely because Trump is facing low approval ratings ahead of the US midterm elections while
Trump announced his latest escalation of the bitter trade standoff between the two countries late on Monday, promising to introduce the additional border taxes of 10% on Chinese goods from next week. The tariffs – designed to make US domestic products more competitive against foreign imports – apply to almost 6,000 items, including consumer goods such as luggage and electronics, housewares and foods.
The US president threatened further tariffs on an additional $276bn of goods if
Early Tuesday he tweeted to accuse
The US president added: “What China does not understand is that these people are great patriots and fully understand that
“They also know that I am the one that knows how to stop it. There will be great and fast economic retaliation against
…..
However,
Analysts said the Chinese government has a comprehensive toolbox of measures it could also deploy to disrupt US businesses operating in
Ahead of China’s latest move
Erik Britton of research firm Fathom Consulting said he believed
“Our likeliest outcome is that
Britton added that Trump was probably using the threat of tariffs to force
“The point is they[ the US] want something to change,” he said. “When I threaten my kids with stopping their pocket money it’s not that I want to raise money. It’s that I want them to tidy their room.”
Trump has argued
While
David Chmiel, the managing director of risk consultancy Global Torchlight, said: “There could be a weaponising of regulation by
Economists said this could have a significant impact as many US companies – including Nike,
Keith Wade, the chief economist at Schroders, said: “Very zealous enforcement of regulations could make life quite difficult for companies. America is also probably more dependent on
Geoffrey Yu, head of the