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U.S-China trade war
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
- 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.
- 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.
- 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.
- 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.
- 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