United States and China have imposed fresh tariffs on each other worth billions of dollars in the latest spate in trade war between two nations. US has imposed tariffs to the tune of $16 bn on Chinese automobiles, machinery, metals.
The Commerce Ministry of China has stated that it has to make reciprocal tariffs on US and will also lodge a complaint against US in WTO. The latest tariffs have come despite high-level talks between two countries over last two months.
US had slapped a 25 percent increase in tariffs on China on goods worth $34 billion thus inviting similar tariffs from China in July. Presently goods worth $50 billion have come under the envelope of tariffs. US Trade Representative is considering more tariffs on Chinese goods worth $200 billion as it has blamed China of resorting to unfair trade practices primarily in technology. US administration is in process of reducing its trade deficit with China which had touched $375 billion in 2017.
Chinese foreign ministry is expecting to reach a deal with US soon as the continued tariff war will have great blow on Chinese confidence. Apart from the economic tensions with US, China is also grappling with an economic slowdown which has started to hit investor confidence. In addition, China is highly in debt which will further increase in its effort to protect its businesses and industries from the tariff war.