Manufacturing

China hits US with £3bn import tariffs in retaliation for steel

April 2, 20181.2K views0 comments

President Xi Jinping of China has retaliated against Donald Trump by hitting the USA with tariffs on popular imports like pork and wine.The trade war row comes after the US President hit Beijing with steel and aluminium duties totalling $60 billion last month.

The move will “safeguard China’s interests and balance”, according to Beijing.

President XI plans also to place 15 percent tariffs on nuts, fresh and dried fruit, as well as rolled steel bars.

 
Some experts warned China could tax US tech companies like Apple next – which would force big American firms to raise their prices to compensate.But Donald Trump has reacted bullishly to the news that China has ramped up its efforts in a trade war with America.

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The imposition of tariffs is due to China’s theft of foreign intellectual property – and a historical trade imbalance between the two nations.

Trump insisted “trade wars are good,” and that it will be “easy” for the USA to beat China.

China has a large surplus with the US and for that reason has much more downside if a trade war escalates.The President tweeted last month: “When a country (USA) is losing many billions of dollars on trade with virtually every country it does business with, trade wars are good, and easy to win.

“Example, when we are down $100 billion with a certain country and they get cute, don’t trade anymore-we win big. It’s easy!”

American authorities have already announced plans to further place tariffs on Chinese imports.

A tit-for-tat trade war between the two economic superpowers has been developing for some time – and could jeopardise growth in global markets.Donald Trump has also warned the European Union they too could face tariffs if they do not open up their market.

The EU is famously protectionist, ratcheting up tariffs against often less prosperous non-EU countries.

Prime Minister Theresa May has tried to use her influence to oppose the erection of trade barriers in Europe and America, as has Trade Secretary Liam Fox.

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