Trump now wants to hit China with $100bn tariffs
Ignoring cries of a "trade war," US President Trump has now asked his officials to consider a further $100bn of tariffs against China. This action was prompted after "China's unfair retaliation" against the earlier US tariffs worth $50bn. This tit-for-tat tariff war between these two powers would unsettle the global economy. Here are the details.
How did this trade war begin?
The trade war began last month when Trump announced steep tariffs on imported steel and aluminum imports. This was because the struggling domestic market was facing a "national security" threat. Subsequently, US imposed tariffs exclusively on Chinese imports, worth up to $60bn. China followed it up with up to 25% tariffs on 128 US goods affecting imports worth $3 billion.
Why did the row escalate?
On April 4, US went ahead and proposed additional 25% tariffs to the tune of $50bn on 1,300 Chinese items ranging from chemicals to machine parts. China retaliated with 25% additional tariffs on 106 US goods, including core American exports like soybeans and whiskey. Trump's newest policy aims to force China to address the issue of US intellectual property theft and forced technology transfer.
How was Trump's move received?
Trump's actions have received strong reactions even from his fellow Republicans. Senator Ben Sasse remarked, "Hopefully Trump is just blowing-off steam again but, if he's even half-serious, this is nuts. Let's absolutely take on Chinese bad behavior, but with a plan that punishes them instead of us. This is the dumbest possible way to do this."
