There has been a new development in the trade spat between China and the United States.
The US threatened to add a new duty worth 10% on roughly $200 billion worth of Chinese imports as retaliation for China’s retaliation to the first round of sanctions by the United States imposed last Friday.
China is lodging a formal complaint with the World Trade Organization and has proclaimed the newly-proposed tariffs as unfair and outrageous. The Asian country also stated that they are fully prepared to fight back against any tariffs Trump throws their way, even though they see how a trade war is bad for international business. Other than more tariffs, China can also limit the rights of American companies to manufacture goods in China, as well as cut back on its foreign investment and even limit tourism to the United States. China has to rely on measures other than tariffs because they simply do not import that much from the United States, so they are running out of goods to sanction.
The markets have reacted negatively to the US policies and stocks are marking losses all over the world. Trump’s policy is met with criticism even within the American government.
