US president Donald Trump’s assertion on reducing trade deficit has led to multiple trade barriers besides a hike in tariffs. Of the $566 billion US trade deficit, China alone accounts for $375 billion.
An additional $100 billion in tariff was imposed on Thursday. Here are the products that have undergone a change in tariffs and duties.
China in retaliation to US tariffs, also restricted buying and imposing its own set of tariffs, thereby leading to a scare among markets.
Beijing has imposed an additional duty of 25% on soybeans. China lifts close to 61% of US’s exports. Production of soybeans is likely to be impacted considering China consumes close to 30% of total production of the US cereal.
Fresh fruit, Californian Wine and Pork are the other products that China lifts from US. There have been a slew of duties imposed on these products in the past two months. Duties range from 15-25% on US agricultural products
US has placed duties on product categories such as Machinery, Information & Communication technologies, Aeronautics, and robotics.
China followed with its own set of retaliatory tariffs- a 25% duty on US aeronautics and automobile sectors. Tariffs for planes imported by China will have an impact on companies like Boeing.
Steel & Aluminum
A 25% duty on steel imports from China and 10% on Aluminum is what has been signed by Trump on March 8.
China retaliated suggesting that the measure may not impact the world’s largest producer since it exported only 2% of steel exports to the US, and 10% in the case of Aluminum to the US.
Trump accused China of unfair competition and failing to protect the Intellectual properties of US companies. Washington commenced a formal trade investigation into China’s intellectual property practices and has also raised a challenge with the World Trade Organisation on March 23.