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- China has decided to impose tariffs on $60bn of US goods extending a bilateral trade war.This move comes after the US had more than doubled the tariffs on $200bn of Chinese imports.
- The United States and China were discussing a trade deal to end the trade war.However,the latest round of US-Chinese trade negotiations has ended without a deal.
- 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.
- The US has argued that China’s trade surplus with the US is the result of unfair practices including state support for domestic companies.It also accuses China of stealing intellectual property from US firms.
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