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U.S., China swap tariffs on billions in commodities
Why is it in news?
- The U.S. slapped steep tariffs on another $16 billion in Chinese goods on Thursday, triggering a swift tit-for-tat retaliation from Beijing, even as negotiators from both sides seek to soothe trade tensions.
More in news
- The latest action completes the first round of $50 billion in Chinese products that President Donald Trump had targeted, with Beijing striking back at American products dollar-for-dollar at each step.
- China “firmly opposes the tariffs and has no choice but to continue to make the necessary counterattacks.
- Beijing hit back with tariffs on an equal amount of U.S. goods, targeting iconic products such as Harley-Davidson motorcycles, dump trucks and asphalt, among hundreds of others.
- U.S. tariffs were “clearly suspected” of violating the World Trade Organisation rules, and noted it would file a lawsuit against them under the WTO’s dispute resolution mechanism.
- The escalation came as the world’s two largest economies hold their first formal discussions since June on the spiralling trade war.
- Mr. Trump has pushed aggressive trade actions to lower the U.S. trade deficit. But U.S. trading partners have retaliated aggressively, which is hurting American farmers, manufacturers and consumers.
- Still pending is the possibility of new duties on another $200 billion in Chinese goods, which are the subject of public hearings this week, as well as Mr. Trump’s proposed 25% taxes on all auto imports to protect the U.S. car industry.
Source
The Hindu