Washington/Beijing: There are indications of a trade war flaring up between US and China, the leading world financial powers. After taxing the agricultural imports from the US, China has now announced levying of tax on the chemical ‘Styrene’ being imported from the US. At the same time, President Trump has criticised the Steel and Aluminium being exported by China to the US and warned of new restrictions.
The Chinese Commerce Ministry in its press release, has said that the US is dumping the chemical ‘Styrene Monomer’ in China. There is information supporting this found in the investigations and the commerce ministry has claimed that the US is selling the concerned chemical, at a price that is 5% to 10% lesser. Due to this, China announced an import duty of 5% to 10% for protecting the Chinese manufacturers from incurring losses.
The decision of levying of the import duty will come into force on the 13th of February and orders have been issued that the US traders will have to deposit this duty in cash. ‘Styrene’ used in the packaging and plastic industry, is imported into China from Taiwan and South Korea along with the United States. In 2017, China had imported ‘Styrene’ worth about $ 4 billion from the US.
The US President has taken an aggressive stand, once again, while the China’s process of levying duty is in process. The US President, Donald Trump on Tuesday, accused Chinese exports as the cause of suffering for the US Steel and Aluminium industry. Trump warned that necessary steps will be taken to save these industries, keeping in mind the US interests. By saying that all the options are open to him, he indicated the possibility of imposing restrictions.
Only last month, President Trump had announced imposition of an import duty on the solar panes and washing machines being imported from China.