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Jul 05, 2018

Steep US tariffs on Chinese goods due to take effect from tomorrow

Steep US tariffs on Chinese goods are due to take effect from tomorrow. The US will levy a 25-percent tariff on more than 800 Chinese product categories worth around 34 billion US dollars. President Donald Trump has threatened to progressively ratchet up US penalties to a total of 450 billion US dollars in goods. The tariffs target a broad spectrum of Chinese goods, such as passenger vehicles, radio transmitters, aircraft parts and computer hard drives from industries.

A second tranche of 284 goods worth 16 billion US dollars is currently under review and could be added to the US list. China is expected to retaliate as soon as the US tariffs go into effect, imposing duties on goods worth roughly the same amount. The tit-for-tat measures between the two financial superpowers will send shock waves around the global economy and strike at the heart of the world trading system. Head of the International Monetary Fund,Christine Lagarde has said tit-for-tat cycle of retaliation would only create losers on both sides.

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