US-China trade war escalates as Trump adds more tariffs

By Rachelle Harry

In a new development in the trade war between the US and China, US President Donald Trump is adding a 10% tariff to $300bn worth of imported Chinese goods, with effect from September 1.

Congestion at airports – and disruption to wider supply chains – could occur in the short term, as items such as electronics and clothing are rushed from China to the US before the new tariff is implemented.

China’s foreign minister, Wang Yi, commented: “Adding tariffs is definitely not a constructive way to resolve economic and trade frictions. It’s not the correct way.”

In addition, the US Chamber of Commerce, which represents more than 3m US companies, believes that the latest tariffs on China “will only inflict greater pain on American businesses, farmers, workers and consumers, and undermine an otherwise strong US economy.”

The latest action taken by the US contrasts progress in the trade war that was made in July. Last month, following discussions with Chinese President Xi Jinping at the G-20 summit in Japan, Trump stated that he would hold off imposing a 25% tariff on an additional $300bn worth of Chinese goods. He also permitted US firms to continue selling products made by electronics giant Huawei, thereby reversing a ban imposed in June.


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