Washington: US President Donald Trump has threatened to impose tax on goods worth $ 267 billion imported from China. The implementation of imposed tax on Chinese goods worth $ 200 billion may be announced on short notice and the plan for the subsequent imposition of tax on goods worth $ 267 billion also is ready, said Trump. He also indicated that the new taxes will change the trade equations between the United States and China.
Only last week President Trump had announced that the preparations for imposing tariffs on Chinese goods worth $ 200 billion were already underway. The deadline for suggestions expired on the 6th of September and the announcement of taxes is expected any time now, indicated sources in the Trump administration.The Chinese exports to the United States are more than $ 500 billion and the United States’ exports to China are less than $ 200 billion.
President Trump had accused that the trade deficit of $ 375 billion suffered by the United States in the Sino-US trade is sheer daylight robbery on the part of China. Two months ago, President Trump had said in a statement that the United States was prepared to tax the entire Chinese goods import of $ 500 billion. Till date, the United States has implemented tariffs on $ 50 billion worth of Chinese goods and considering that the imposition of tariffs on goods worth $ 200 and 267 billion is in the pipeline, the total goes up to $ 517 billion. This indicates that the preparations are to impose tax on the entire imports from China.
Trump, while issuing the threat of tax imposition on $ 267 billion, noted that the scope of future action will depend on the Chinese attitude. This statement is considered to be a warning issued by Trump to the US companies who have huge capital investments in China and who had expressed concerns that this tax regime can also hit them.
It has been consistently observed over the last few days that the Chinese economy is suffering severe jolts as a result of the taxes imposed by the United States. Therefore, there are indications that the threat issued by President Trump could be a decisive turn in the Sino-US trade war.