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- United States President has decided to raise tariffs on almost all imports from China which are valued at approximately $300 billion.
- This is in addition to the Chinese imports worth $200 billion on which US had increased the import duty from 10% to 25%.
- The United States and China are currently discussing a trade deal.The deal will end the trade war between both the countries that has been escalating since last year.
- Trade war is a situation where countries restrict each other’s trade by imposing tariffs or quota on imports.Tariffs are a tax on imports.They are typically charged as a percentage of the transaction price that a buyer pays a foreign seller
- China has pointed out three major areas of disagreement between the two countries which are (a)whether to cancel all trade war tariffs when an agreement is reached (b)the exact size of Chinese purchases of U.S. goods and (c)balanced agreement text.
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