The United States President Donald Trump in another heated shot is considering another $100-billion tariff bouncer for the Asian economic giant China- a move which will add more heat to the already firing trade dispute between the two nations.
President Trump does not chew retaliation easily and has clearly stated that the new tariffs are in response to the Chinese answer to the previous US tariffs of $50billion especially as China has been pursuing highly unfair trade practices to have access to US Intellectual property. The tariffs reciprocated by China will have a heavy impact on US farmers of Western and mid-western states. United States Trade Representative has repeatedly raised the issue of irresponsible Chinese trade policies. The recent tariff announcement has triggered a sharp sell-off in the financial markets as the clouds of trade war become darker.
The Trump tariffs of 25 percent on 1300 goods of China had sought an equal retaliation from China on US imports of chemicals, cars, soybean and beef. The recent moves by both the nations show no sign of near abatement and have further intensified the possibilities of a trade war which can have devastating consequences for growth across the world.
China has a $375 billion trade surplus with the US which Trump administration has demanded to be slashed by $100 billion. President Trump has repeatedly stated on many occasions that the tariffs are designed to have a greater edge at the negotiating table and make China pay for its trade wrongs done to US intellectual property over the years. Section 301 of USTR investigation had ratified the tariffs as it accused the Asian giant to resort to inappropriate practices against US intellectual property.
Financial markets are on a roller-coaster ride since past few weeks as the tensions rise and fall drastically without any prior warnings.