President of the USA Donald Trump slapped China with tariffs on $60 billion in imports. This is a retaliation by America for the “theft” of American intellectual property as claimed and it will intensify the trade tensions between the two nations.
Trump signed this new order and as per the experts, it can also affect China’s investment in the USA.
China has vowed that it will retaliate and chances are that the cold war between China and the USA will turn in to a trade war.
On the other hand, the USA said that six nations will be exempted from rising steel and aluminum tariffs that were announced earlier. Trump said on signing the new trade order that, “We have a tremendous intellectual property theft situation going on.”
Everett Eissenstat Senior White House economic advisor said that industrial sectors are targeted in this new import duties, saying, “China has sought to acquire an advantage through the unfair acquisition or forced technology transfer from US companies.”
As per Vice President Mike Pence, this new decision is another promise made and a promise kept by president Trump.” As per Pence, this step “makes it clear the era of economic surrender is over.”
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The Dow Jones Industrial Average on the Wall Street was down by 2% but immediately recovered the losses after the announcement.
White House trade adviser Peter Navarro said. “The problem is that with the Chinese, in this case, talk is not cheap, it’s been very, very expensive and finally the president decided we needed to move forward.”
Beijing has been clear in its stance that trade war will not benefit anyone, it will only increase the tensions on both sides.
American agriculture industry, other markets, and even President’s Republican party members have voiced their concerns that this move by Trump will give fire to a never-ending war between the two nations and it will eventually hurt the USA more.