China strikes back with its own taxes after import measures Trump | NOW



Now that the Chinese are knocking back, both countries are in danger of slipping towards a full trade war. Even before the Chinese announcement, US President Trump had said that he would answer a counter-step with more extensive sanctions.

The Chinese said Tuesday that they had no choice but to return the American '' unilateralism and protectionism ''. Taxes of 5 and 10 percent are levied on more than five thousand selected products.

In a previous threat there was still a third levy rate of 20 to 25 percent. That would apply to liquefied gas and all kinds of oil-related products.

The United States announced new import tariffs on 200 billion dollars (171 billion euros) of Chinese goods on Tuesday. The import duties will take effect next Monday.

The Americans will use rates of 10 percent for products shipped from China to the US. If manufacturers pass on the extra costs, products become more expensive for buyers.

Possible further steps may now follow

The levies are increased to 25 percent by the end of the year. In this way, American companies have a little more time to adjust their supply.

The list of goods for which the rates apply is, however, adjusted in relation to previous messages. For example, smartwatches from Apple and Fitbit have been removed from the list as well as other consumer products, including bicycle helmets and child car seats.

Washington already charged rates on 50 billion dollars of Chinese products. Trump also anticipated charging a further 267 billion dollars in goods from Chinese manufacture, on top of the now announced rates. In that case, almost the entire export from China to the United States would be subject to levies.

Trump is annoyed by the large Chinese trade surplus with the US. He also accuses China of abusing American intellectual property for his own gain.

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