US prepares to impose tax on Chinese imports worth $ 267 billion, threatens President Trump

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 6^th 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.

Taxes imposed on Canadian cars will devastate the country, says Trump

Washington/Ottawa: “If I tax cars coming in from Canada, it would be devastating. But I don’t want to do that. I do use that as leverage in negotiating, where they don’t want to give us some points. I say, that’s ok, I’d rather tax your cars coming in, and I win a lot of points because of it.” said US President Donald Trump.

The negotiations about the changes in the NAFTA trade deal signed among the US, Canada and Mexico are yet ongoing. The US had discussion with Mexico and has been successful in signing the alternate deal. However, the discussion with Canada is pending due to some issues. The threat issued by President Donald Trump draws attention against this background.

Earlier, the US President had imposed heavy taxes on the Canadian import worth billions. As a befitting response to it, Canada too imposed duty on more than 150 US goods. This further escalated the trade conflict between the two contries. Moreover, the threat issued by Trump has resurfaced this issue.