Until now tit-for-tat tariff exchanges had seen the US levy a 145 per cent tax on Chinese imports and China slap a 125 per cent duty on American goods.
China now faces tariffs of up to 245 per cent on import of goods into the United States “as a result of its retaliatory actions”, the white House said Tuesday afternoon as the trade war between the two countries appears to run further and further off road.
The announcement came as Donald Trump authorised an investigation into “national security risks posed by the US’ reliance on imported, processed critical minerals. Which includes cobalt, lithium and nickel, and rare-earth metals used to manufacture batteries, such as those used in electric vehicles.
US and China Tariff:
The order points out the US is “dependent on foreign sources… at risk of serious, sustained, and long-term supply chain shocks”. And this dependence raises potential for risk to national security.
There is, however, some confusion about the tariff on China being ramped up by 100 per cent. It appears- and the US has not confirmed this as yet- that the 245 per cent mentioned by the White House refers to the total amount of tax that can be levied on Chinese goods imported into the US.
However, simultaneously China also said its economy grew a forecast-beating 5.4 per cent in the first quarter. Industrial output climbed 6.5 per cent and retail sales 4.6 per cent year-on year.
“Beijing warned that the global economic environment is becoming more complex and severe, and emphasized the need to do more to boost growth and consumption.”
If the US really wants to resolve the issue through dialogue and negotiation. It should stop blackmailing and talk to China on the basis of equality, respect and mutual benefit, spokesman Lin Jian said.
