China threatens to impose taxes on imports of US goods worth $60 billion

Beijing: China has retaliated to the US President, Donald Trump’s threat of imposing additional taxes of 25% on goods imported from China worth $200 billion. China has retaliated with a warning that taxes varying between 5% and 25% will be imposed on goods worth $60 billion imported from the United States. This warning by China indicates further flaring up of the China-US trade war.

A few days ago, President Trump had pointed out that China reaped a profit of $517 billion in its bilateral trade with the United States. Trump had also expressed displeasure saying that China is targeting the US farmers. Against this background, the Trump administration had announced that the preparations are being made for the imposition of 25% tax on Chinese goods worth $200 billion.

There is a severe reaction from China against the warning issued by Trump. Saying that ‘we are forced to act because of Trump’s actions’, the Chinese Commerce Ministry announced the imposition of taxes up to 25% on goods imported from the United States worth $60 billion. This list contains more than 5000 products of US origin including aeroplanes, soya bean oil, meat, coffee, and flour. China also warned of the reduction in the purchase of ‘LNG’ and ‘Crude Oil’ from the United States.

Till date, the United States has imposed taxes on Chinese goods worth $34 billion and China has targeted goods from the United States worth $3 billion. The taxes imposed by the United States are already showing their effects on the Chinese economy and if new taxes are imposed, indications are that it may deliver a major blow to the Chinese economy.

Meanwhile, there is a severe reaction from the United States, regarding the Chinese imposition of taxes on US goods worth $60 million. Chinese economy is weak. The US President has declared that imposing the taxes is a part of a specific policy. If China had listened to what we had to say, the taxes could have been dropped, but that was not the case. The Chinese President should not test President Trump’s resolve,’ said Larry Kudlow, the financial advisor to President Trump.

Kudlow’s statement is an indication that the Trump administration has completed the process of imposing taxes on Chinese goods worth $200 billion. Therefore, there is a strong possibility of the relations between the two countries worsening further.