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Global Geopolitical Series: Trump announces further possible retaliation on $200 billion Chinese goods

As China acted swiftly by announcing tariffs on $50 billion U.S. goods, in response to President Trump’s announcement earlier this month that his administration would impose tariffs on $50 billion Chinese goods, President Trump escalated the tariff war further by directing his Trade Secretary Robert Lighthizer to find Chinese goods to impose tariffs on $200 billion worth of imports. Though President Trump has always hailed his personal relationship with Chinese President Xi Jinping and blamed his predecessors for present day’s large trade deficit with China, he has described China as the biggest rule breaker and the most unfair player in the global trade arena. In 2017, U.S. goods trade deficit with China reached a record high of $375.6 billion. Imports of Chinese goods were four times larger than U.S. exports to China.

Both the countries have made efforts in recent times to resolve the trade dispute amicably with China offering to buy additional $70-80 billion worth of goods, mainly agricultural. However, it wasn’t to the satisfaction of President Trump, who demanded $200 billion reductions in the deficit over the next couple of years.

The first wave of both U.S. and Chinese tariffs would hit on July 6th at 25 percent and the rest would go into effect at later dates. Now, the newly announced 10 percent tariffs on $200 billion worth of goods would go live from the United States if China retaliates on the initial $50 billion.

Separate tariffs on U.S. goods would go live in the European Union also in July, in response to President Trump’s metal tariffs.

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