China left with ‘no choice’ but to retaliate in wake of latest US tariffs
America is imposing new tariffs on Chinese goods worth $200bn (£150bn) – escalating its trade war with China following two other rounds of taxing.
In response, China has said it now has “no choice” but to retaliate against America’s decision.
The taxes will apply to almost 6,000 items including handbags, rice and textiles – marking the biggest round of US tariffs so far.
The US taxes on these items, which will start at 10%, will come into effect from 24 September. It’s said the taxes could increase to 25% from the start of next year unless the two countries agree a deal.
US president Donald Trump also threatened to hit China with tariffs on another $267bn worth of products if China retaliates.
The tariffs started back in July when the White House increased charges on $34bn worth of Chinese products.
In August, a second wave of tax was announced on goods when the US brought in a 25% tax worth $16bn.
With these latest tariffs this now means that almost half of all Chinese imports to the US have increased in price.
Dr Tony Syme, expert in macroeconomics and international finance at the University of Salford Business School, said: “President Trump needs to be very careful when considering whether or not to carry out his threat to escalate this trade war with China.
“While the full effect may not be felt until after the mid-term elections, it is predicted to have a very large negative effect with hundreds of thousands of jobs lost in U.S. agriculture and services.
“There may be short-term political gains, but this is an economic game with very few winners.”