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US and China begin forcing new tariffs as trade war heightens

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China and the United States have started forcing new taxes on one another’s goods in the recent heightening of their trade war situation that has sent shockwaves through the global market. 

New taxes took effect from 0401 GMT on Sunday, with Beijing’s duty of 5% on US crude oil denoting the first time the target was fuel since the world’s two biggest economies began their trade war.

The US government will start collecting 15% taxes on more than $125bn in Chinese imports, including Wifi speakers, Bluetooth earphones, and many footwear. 

In counter, China began to force extra taxes on some of the US products on a $75bn target list. Beijing did not indicate the estimation of the products that face higher charges from Sunday. 

Extra taxes of 5% and 10% were imposed on 1,717 products of a sum of 5,078 items originating from the United States. Beijing will begin collecting additional taxes on the rest of 15 December. 

The new round of duties ensures greater instability when the stock markets resume trading on Monday.

Greg McKenna, an Independent Australian market strategist, said that “While duties are forced, and the global development, income, and loan cost cycles are pointing down once more,” “Also, the inverted US yield curve means to many that the best-case scenario the US economy is slowing down, and best-case scenario is that the recession count down has started.” 

According to the Guardian, the trade taxes on China have added to the slowing down of the Chinese economy, also impacting other nations’ economies in the region.  

The Chinese yuan tumbled to an 11-year low against the US dollar a week ago. South Korea declared on Sunday that its trading had fallen for the ninth month straight. 

However, the Chinese state media struck a resistant note on Sunday. 

“The United States ought to figure out how to work as a capable global power and quit going about like a ‘school bully,'” the authority Xinhua news office stated. 

He added, “As the world’s biggest superpower, they need to bear its proper duty and join different nations in improving this world and progressively flourishing place.”

A month ago, Donald Trump announced he was forcing duties on $300bn worth of Chinese imports recently spared in the trade conflict. 

A portion of the taxes was later postponed until December in grant to US retailers. Tariffs of 15% on Smartphone, computers, clothes, and toys will apply from 15 December. 

The president has likewise declared that the current 25% levies on a different group of $250 billion of Chinese imports will rise to 30% on 1 October. 

When all the steps have implemented until December, the majority of China’s $540bn worth of exports to the US will be liable to the tariffs. 

On Thursday, the US trade representative’s office stated, it would gather public comments until 20 September on a designed tax increase to 30% on a $250bn account of goods earlier hit with a 25% duty. 

China and the United States trade teams continue to talk and will meet this month, yet tax climbs on Chinese commodities set to begin on Sunday, it won’t be deferred, President Trump stated. The Guardian reported.

Since long, the Trump administration has tried to press China to bring change in its policies on intellectual property protection, constrained transfer of innovation to Chinese firms, industrial grants, and market entree. 

China has continuously denied Washington’s allegations that it participates in illegal trade practices.

The article report is as per the Reuters and Agence France-Presse

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