President Donald Trump has stated that he will impose new tariffs on goods and products from China from 25% to 30% in response to additional tariffs on US imports announced by Beijing on Friday.
“China should not have put new Tariffs on 75 BILLION DOLLARS of United States product (politically motivated!). Starting on October 1st, the 250 BILLION DOLLARS of goods and products from China, currently being taxed at 25%, will be taxed at 30%… “Trump wrote on his Twitter account.
In addition, the remaining 300,000 million dollars of goods and products from China, which were subject to taxes from September 1 to 10%, will now be subject to 15% tax, the US president added.
China announces additional tariffs
The Ministry of Commerce of the Asian country reported Friday that a series of tariffs on 5,078 various US goods items, ranging from 5% to 10% will take effect in two lots, on September 1 and December 15. The measures will affect US imports totaling $75,000 million.
With this decision, Beijing responds to similar actions recently undertaken by Trump. In particular, it is the imposition of 10% tariffs against certain Chinese products, including laptops and cell phones, worth $300 billion, which will enter into effect on September 1.
For its part, in response to these tariffs, the Chinese government dropped the yuan, which led the US president to label the Asian country as a “currency manipulator”.
Trump strikes back
President Trump returned the coup with a series of tweets in which he denounced that his country “has stupidly lost trillions of dollars with China over the years,” accusing the Asian giant of stealing his intellectual property”.
“I will not allow that to happen! We do not need China and, frankly, it would be fair to say that we will be better off without them,” added the President. In this regard, he ordered the national companies “to start looking for an alternative to China immediately”, which brought down the main US stock indexes. In particular, he mentioned companies such as FedEx, Amazon, and UPS.
Also, the president warned that he will “respond throughout this afternoon” to Chinese tariffs.
Faced with this ‘tariff war’ between Washington and Beijing, the US stock indexes registered strong falls. The Dow Jones Industrial Average index lost more than 600 points.
