New tariffs by the US on Chinese imports are going to rise to an eye-watering 104% starting Wednesday, as stated by the White House. This is a big escalation of the existing trade war between the two largest world economies, as US President Donald Trump threatened to raise the US tariff on Chinese imports by an extra 50% if Beijing hits back.
The action is part of a larger effort to put pressure on China to resolve long-standing issues regarding trade imbalances, intellectual property theft, and unfair trade practices. Trump’s administration has indicated that this is a negotiation strategy, an attempt to get China to the negotiating table for better trade terms for the US.
While the American government hopes the new tariffs will bolster its strength, China’s reaction is unclear, with most experts forecasting that the retaliatory measures will damage both parties in the long term. The growing tension between the two countries is already impacting world supply chains, as businesses are looking for other markets to sidestep the extra expenses.
The tariffs occur as both nations are under intense economic pressure, and the rest of the world waits with bated breath to see how this trade war will be played out. As uncertainty surrounds everyone, both consumers and business operators are holding their breath, waiting for the effects on prices and global trade patterns.
