Why is it in news?
- Recently, China said it will raise tariffs on $60 billion worth of U.S. goods from June 1, in retaliation to the latest round of U.S. tariff hikes and Washington’s plans to target almost all Chinese imports.
More in news
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Failure of negotiations: The announcement came after the latest round of U.S.-China trade negotiations ended without a deal, and after Washington increased tariffs on $200 billion worth of Chinese goods.
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New duties in line: U.S. President Donald Trump had also ordered the start of a process to impose new duties on another $300 billion worth of Chinese items.
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Time for resolution:(1) Despite the retaliation, Beijing appeared to give time to find a resolution by setting the June 1 date.(2) The new rates will target a number of American imports with tariffs ranging from 5% to 25%.(3) The Chinese response was announced soon after Mr. Trump warned Beijing not to retaliate.
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Less import by China from U.S: In addition to tariff hikes, China could also use other measures to hit back at the U.S., as it imports fewer U.S. products ”” which limits its ability to match tariffs dollar-for-dollar.
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Previous trade tensions: In a previous round of tit-for-tat moves, the U.S. imposed 10% tariffs on $200 billion of Chinese imports in September.
Source
The Hindu