As an Eye for an Eye action, China imposed 25 percent high tax on a list of US products that were exported to China from the US. This unprecedented act of China came up after Trump's Administration raised tariffs on some Chines products on Tuesday.
China expressed its idea of hiking Tariffs over the US products in the World Trade Organization (WTO) on Wednesday. The china imposed tax hike over 106 main products of United States including Whisky, Pork, Soya Beans, Chemicals, cars and Aircraft.
The Spokesperson of Chinese Finance Ministry said that the finalised list will be unveiled on May 15 as the agency decided to set up public hearings on the tariff plans. The action of Chinese tax agency is considered as a strong retaliatory action against the US for imposing an increased tax on Chinese technologies that worth 50 billion dollars imports annually.
As per the statement of Chinese Finance Ministry had not specified any date regarding the new tax hike implication but the effective date will be based on US date adoption for implementing its new tariffs to the Chinese goods.
China has listed out Soya Beans in the tax hike list on Wednesday where China is one of the important importers of American Soya Beans. This seems an unexpected listing by Chinese finance ministry in the retaliatory action. However, the action will lead to a great economical infection over the farmers.
World economic experts consider the act of Trump administration and the Chinese Finance Ministry as a trade war and it won't make benefit to both countries but end up in the worst impact on consumers of both countries.
American President Donald J, Trump had tweeted regarding the Trade war. He said that the US has no intention of a trade war that ended a long back that started by some foolish persons those who represented the US. He continued that the US is now facing a Trade deficit of $500 billion in addition to the $300 billion worth of intellectual property and he is not ready to let that continue again.
Previously Trump promised for narrowing the trade deficit with China and now the tariff imposition had brought that promise under threat.