US brings in second batch of tariffs against China

• Posted on August 23, 2018
• by Ellsamwise King
• Comment

US President Donald Trump’s trade war against China has moved up a gear as it brings in a 25% tax on a second wave of goods worth $16bn (£12.4bn).

The move ratchets up the dispute which began in July. The US imports far more goods from China than it exports to it.

There are fears that more tariffs could cause further damage to companies and consumers. Goods affected this time include motorcycles and aerials.

China immediately imposed retaliatory taxes on the same value of US products.

These will cover US goods including coal, medical instruments, cars and buses.

China also says it plans to file a fresh complaint against the tariffs at the World Trade Organization (WTO), which adjudicates in global trade disputes.

China’s commerce ministry warned of a “counter-attack” after Washington imposed the tariffs, saying it “clearly suspected” the US of violating WTO rules.

It filed an initial complaint at the WTO in July as Mr Trump imposed his first round of tariffs.

The tit-for-tat tariffs come as officials from the US and China hold low-level talks in Washington, but hopes are not high that they will bring the dispute to an end.

As well as China, Mr Trump has imposed taxes on Mexico, Canada and the EU, to encourage consumers to buy American products. All of those countries have retaliated.

This second round of tariffs comes despite testimony to the US Trade Representative’s Office by dozens of US companies and industry groups.

Source: BBC