China dismissed U.S. President Donald Trump’s latest acceleration of the Tariff war. According to state media, the Trump administration increased tariffs pretty near to 110$ billion on Chinese imports. Editorials and critiques focused on the impact it might have on U.S. customers. Chinese officials have not yet given any comments on what they intend to do for the upcoming private negotiation meeting this month in Washington. Up to date $160 billion in Chinese goods will be affected with 15% tariffs on December 15th.
As currency markets were opened for trading Yen edged higher against the Dollar, it cost 7.1682 per dollar on Monday at 10:38 a.m in Beijing. Asian stocks were affected immediately after the tariffs were brought in. Although reporters claim this action to be a turning point for US economics by hitting American customers precisely, Trump administration does not plan to negotiate any further. Business groups are demanding for a tariff truce and renewal of the negotiation between the world’s largest economies, whilst China has reportedly retaliated with tariffs on $75 billion of U.S. goods at 12:01 p.m Sunday in Beijing which might suggest on prolonged confrontation. It strikes Trump’s main support factories and farms and is gradually decreasing the economics of U.S.
Results insist that by 2020 Trump’s Tariffs might reduce the significance and cost of Real U.S. GDP by approximately 0.3% and cutdown real household income by $580.
The trade war is also affecting the global economy adversely at the moment. An extra 10% took effect on the 1st of September on Agricultural goods and soybeans will be affected by 5% on top of already existing 25 %. There were no new tariffs imposed by China on liquified natural gas. It will go up to 25% on some vehicles on Dec.15 and decisively total tariff on the U.S. made vehicles will go up to 50 %.
According to Gary Shapiro, president of the Consumer Technology Association claimed that Trump’s move was a big failure. A new approach has to be found for pressuring China to accept the trade deal. As movement like this would not reach a peaceful trade agreement.