The trade war takes a fresh turn as the US President announced to impose fresh tariffs on China. The second set of items that is worth $16 billion or £12.4 billion will be facing a tariff of 25%, which will include products like aerials and motorcycles.
The disagreement spiked up in July and the negative impact is accelerating exponentially since then. As the US imports to China is greater than the exports, it is speculated that the second set of tariff will severely damage the companies as well as the consumers.
On the other hand, China has not stepped back to impose a retaliatory tariff on the US products like cars, buses, coal, and medical instruments. China has also decided to take up the matter to the WTO or World Trade Organization that will judge the matter without any biased influence. Previously, the matter was brought forward by China when Washington imposed tariffs for the first time. In fact, the Commerce Ministry of China has also stated that the US is violating all the rules and regulations designed by the WTO.
China is not the only country to receive the blow of tariff from the US; Donald Trump has also imposed tariffs on the EU, Canada, and Mexico in order to promote selling more American products, especially the ones that have been retaliated.
Various companies and industrial giants have given testimony regarding the matter of tariff at the Office of the Trade Representative in the US. In spite of the action, the US took another measure and imposed 25% tariff on China.
As a result of the same, various US companies have stated that the tariff will also affect the consumers of the US and they will not be able to sustain another blow without elevating the prices for the domestic people.