Arthur J. Villasanta – Fourth Estate Contributor
Washingto, DC, United States (4E) – China has announced its intention to take unspecified but chilling “comprehensive measures,” against the United States in light of new American tariffs imposed on its exports yesterday.
Experts note that since China has run out of U.S. imports to pin counter tariffs on, this threat could only mean making it harder for American firms in China to do business or disrupting their operations. Cina’s vengeful mood was triggered by yesterday’s tit-for-tat tariff hikes by both it and the United States.
Hit by the punitive tariff hikes are billions of dollars worth of cars, factory machinery and other goods made by both countries. America’s 25 percent duties, which it made known a month ago, apply to $16 billion of goods from each side including automobiles and metal scrap from the United States and Chinese-made factory machinery and electronic components.
The World Trade Organization (WTO) has warned the acrimonious trade war triggered by Trump could shave 0.5 percentage points off global economic growth through 2020. This totally unnecessary trade war began July 6 with the U.S. imposing $34 billion worth of tariffs on Chinese imports. On Aug. 7, the U.S. announced the second round of tariffs on $16 billion worth of Chinese goods will go into effect on Aug. 23.
China has either imposed or proposed tariffs on $110 billion of U.S. goods, representing the vast majority of China’s annual imports of American products. In 2017, China imported $130 billion of U.S. goods.
Beijing criticized the new U.S. tariffs as a violation of WTO rules and said it would mount a legal challenge. It’s also rejected U.S. demands to slow down its plans for state-led technology development its trading partners say violate its market-opening commitments.
Trump has also proposed another possible round of tariff hikes that will see 25 percent increases on an additional $200 billion of Chinese goods. Beijing will hit $60 billion of American imports for retaliation if Washington makes good on this threat.
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