China has hit back at President Trump’s 10 per cent tariff on all goods its businesses ship to the United States. This action is said to be to pressure China from exporting fentanyl to the USA.
China has issued a statement saying that it will challenge the tariffs at the World Trade Organisation, whilst also imposing its own 10 per cent tariffs on imports of American crude oil, pickup trucks, agricultural machinery and large-displacement trucks, with a 15 per cent tariff on coal and liquified natural gas. It has also launched an anti-trust investigation into Google.
Further, China says it will impose export controls on tungsten, tellurium, ruthenium and other rare earth metals.
Meanwhile, President Trump has threatened to remove the personal import tax exemption for small parcels valued at under £645 which would potentially decimate online trade for businesses based in China, as well as those in Canada and Mexico.
Talks are scheduled between President Trump and President Xi Jinping to hammer out an agreement.
The outcome could well see other countries following President Trump’s lead, particularly regarding personal import tax matters, which have enabled (primarily) Chinese businesses to flood international markets with low-cost goods across many categories presenting unfair competition for local businesses in those markets.
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