The United States hit China with its biggest round of tariffs in an increasing trade war. The planned talks between both sides have reportedly been terminated. The government of China blamed the administration of Donald Trump for Trade Bullying Practices and frightening other countries through economic measures. The U.S recently imposed 10% tariffs on Chinese products worth 200 billion U.S dollars. It allowed the Chinese government to hit back and impose taxes on more than 5 thousand U.S imports worth 60 billion U.S dollars.
The axe trade talks were previously scheduled between both countries. Delegations from both countries were met in Washington on 22nd August but finished without progress. Shares fell in Europe and Asia with the news. The latest round of tariffs arrived after $50bn worth previously imposed by both China and the U.S on each other’s products. The latest Chinese tax increases would impose 10% against American products including coffee and liquefied natural gas. Other goods including frozen vegetables, chemical products, and cocoa powder will face a 5% tax.
Confronting China over its trade practices was a major campaign promise by Trump. But the U.S President has faced scrutiny over his handling of the tit-for-tat tariff increases his administration started. It was the time when U.S Customs and Border Protection started collecting a 25% tariff on $34bn of Chinese products. The European Union has threatened to take action against the United States if it were to impose tariffs against cars made internationally.