Trade War

World’s Two Biggest Economies are at Trade War


On Friday, China inculpated for the United States of firing the first shot, when confirmation came from the White House of imposing tariffs of 25 percent on the Chinese Goods worth $50 billion. This led to the two biggest economies in the world at war over trade. The announcement affirms about the threat that was first made by the US President, Donald Trump back in March this year follows a month of in between trade talks of both the sides. A truce was declared in May, but that proved short-lived.

In a statement, the Ministry of China’s Commerce stated that the United States has kept changing their minds and now ended up launching a trade war. The Government of China told that would respond in kind regarding the US tariffs that would approximately apply to 1,100 exports, and it would be aiming at the auto, aerospace, manufacturing, and robotics industries of China. Though China added up replying that it doesn’t want any trade war, and in defense of its national interest, world trade system, and globalization it would fight back vehemently. China even stated that they would instantly launch tariff measures to match with the intensity and scale of those launched by the U.S. Beijing even stated that the entire economic and trade deals reached by the past negotiations would be canceled out at the same time. This includes a faltering agreement for raising the purchases by China of agricultural goods, and energy of U.S. The statement by the commerce Ministry, gave no further explanation regarding American products, which would hit. Earlier China has given words in responding with the retaliatory tariffs on the items of US like; planes, cars and soybeans.

For a long time Trump has complained about the wide trade surplus of China with the U.S. On Friday, in a statement, he told that the trade has been very unfair with China for quite a long time. Trump even added saying that the new U.S. tariffs that will come into action almost by 6th July were designed in punishing China for theft of the intellectual technology and property of America.