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International News

Sep 18, 2018
1:16PM

US-China trade war intensifies; President Trump orders additional 10 per cent tariff on 200 billion dollars worth of Chinese imports

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The trade war between the US and China has intensified. US President Donald Trump has imposed an additional 10 per cent tariffs on about 200 billion dollar worth of Chinese imports. The higher import taxes will apply to almost 6,000 items, marking the biggest round of US tariffs so far. 

The tariffs will take effect from 24 September, starting at 10% and increasing to 25% from the start of next year unless the two countries agree on a deal. Trump said the latest round of tariffs was in response to China's unfair trade practices including subsidies and rules that require foreign companies in some sectors to bring on local partners. 

Trump also warned that if China takes retaliatory action against US farmers or industries, Washington will immediately pursue phase three, which is tariffs on approximately 267 billion dollars of additional imports. If he does go ahead with a further 267 billion dollars worth of tariffs, it would mean virtually all of China's US exports would be subject to new duties.

So far, the United States has imposed tariffs on 50 billion dollars worth of Chinese products to pressure China to make sweeping changes to its trade, technology transfer and high-tech industrial subsidy policies.

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