Washington: US President Donald Trump says that he is going to impose additional 10% tariff on imports from China on 300 billion dollars if China does not move quickly. This additional tariff will be applicable from September 1 of this year.
This tariff can further increase to whopping 25% if China and Xi does not move quickly over the trade deal. The announcement on Thursday extends Trump’s trade tariffs to nearly all China’s imports into the United States and marks an abrupt end to a temporary truce in a trade war that has disrupted global supply chains and roiled financial markets.
According to Donald Trump his top negotiators briefed him that China is not showing adequate amount interest in the deal and is too slow. Hence Trump says that if negotiations fail then additional amount of tariff of 25% will be charged on 250 Billion dollar of imports.
This brought a huge impact on the market, Oil prices plummeted 7%, with Brent crude registering the biggest daily percentage drop since February 2016. The benchmark S&P 500, which had been in solidly positive territory till thursday afternoon, closed down 0.9%. Benchmark U.S. Treasury yields also fell.
Moody’s said the new tariffs would weigh on the global economy at a time when growth is already slowing in the United States, China and the euro zone. The tariffs may also force the Federal Reserve to again cut interest rates to protect the U.S. economy from trade-policy risks, experts said.
Raising tariffs would lower the prospects of a deal rather than expedite it, China’s Global Times newspaper stated. Beijing would focus more on efforts to survive a prolonged trade war, said Hu Xi.
