President Donald Trump has given his approval for levying tariffs on $50 billion Chinese exports after a key meeting with his top economic advisors Steve Mnuchin, Commerce Secretary Wilbur Ross and Lighthizer who is US Trade Representative. The move will trigger a serious and grave trade war between US and China.
Beijing has on its part stated that it will retaliate with equal tariffs of $50 billion of US products ranging from cars, planes and soybeans etc. It has stated that if the US will resort to any unilateral measure in contradiction with Chinese interests, China will immediately respond and thus take all suitable measures which will protect its legal rights.
President Trump has held China responsible for its alleged role in intellectual property theft against all US firms which came to do business in China. The first announcement of tariffs had come in March. President Trump further intensified the threat of another round of severe tariffs worth $ 100 billion on Chinese products as a response to Chinese threat of retaliation.
It was in May when both sides reached a ceasefire in the growing trade war after intensive trade negotiations in which China had agreed to considerably increase the purchases of US agricultural and energy products as a step to bring down the trade balance which had prompted the US to put an end to the trade war. The US, however, took a U-turn within 10 days of the negotiations and announced that it will go ahead with the tariffs in addition to new and revised limits on Chinese investments in the US.