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US Announces Tariffs On 1,300 Chinese Goods, China Hits Back With New Tariffs On 106 US Products

DIVYIA ASTHANA | 0
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| April 5 , 2018 , 10:36 IST

The trade war between US and China continues to heat up, as China on Wednesday responded to US announcing tariffs to 1,300 Chinese goods by imposing increased tariffs on 106 US products, including soybeans, cars, and whiskey. Meanwhile, the Chinese sectors facing increased tariff from the US include products used for information technology, communication technology, and aerospace.

Neither China nor the US has specified when the new tariffs would come into effect.

ALSO READ: US-China Trade War Heats Up, China Announces Tariffs On 128 US Imports

Trump, soon after announcing the new tariffs took to Twitter, dismissing reports of a 'trade war', saying that the 'war' was lost many years ago by people representing the US.  

"We are not in a trade war with China, that war was lost many years ago by the foolish, or incompetent, people who represented the U.S. Now we have a Trade Deficit of $500 Billion a year, with Intellectual Property Theft of another $300 Billion. We cannot let this continue!" Trump tweeted.

"When you’re already $500 Billion DOWN, you can’t lose!" he added.

The latest tariffs come barely days after the Chinese government had announced that it would be imposing increased tariffs on 128 US products, including pork and certain fruits, in response to the US imposing tariffs on steel and aluminum imports from China.

In early March, Trump had announced his intentions of applying steep tariffs on steel and aluminum imports, exempting several countries, but not China, accusing Chine of misusing intellectual property laws. Subsequently, in late March, US President Donald Trump ordered import tariffs on $50 billion in Chinese goods, to which China responded by ordering tariffs on $3 billion of US imports.

As a result of the 'trade war', US stocks plunged and the value of Chinese Yuan also fell.