President of China, Xi Jinping, is unwilling to back off from the Trade Wars (Image via: South China Morning Post)

Trade Wars: China Strikes Back

BEIJING - Chinese decided to let Trump taste his own medicine. China decided to imitate Trump’s policy, by imposing 25% tariff increase on American untaxed goods in China worth of US$ 60 billion (14/5). This bold step automatically sets the trade wars in a new level, and the tension also intensifies as the two countries will not back off from the field.

On Liu He’s 4 day visitation to US, Donald Trump announced the 25% tariff hike out of the blue on untaxed Chinese goods worth of US$ 200 billion, on the third day of the visitation. It all begun with Trump’s menacing tweets to the Chinese, accusing them of exploiting the deal and leeching off the US. This new tariff ran into force starting 10 May.

After the tariff hike, Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin met Liu He for dinner talk and the following days concerning the trade talks. Unfortunately, the talks went nowhere, despite the statement that the talks are still on.

Beijing reacted to the raise furiously, and promised of the day of reckoning. Now, the day has come. Starting 1 June, all untaxed American goods in China – worth of US$ 60 billion - will be imposed with 25% tariff. With the step from China, the tension between US and China is intensifying as the climax seems to be a far cry from the outcome.

Source: http://world.kbs.co.kr/service/news_view.htm?lang=e&Seq_Code=145160