- The US President has said that the US threat to impose tariffs on Mexico has forced the country to agree to stronger immigration enforcement.He has predicted the same strategy will be successful with China.
- The US President had slapped tariffs on products from key trading partners China,Canada,Mexico and the European Union in order to push them to address alleged trade imbalances.
- Tariffs are a tax on imports.They are typically charged as a percentage of the transaction price that a buyer pays to a foreign seller.
- The United States and China are discussing a trade deal to end the trade war.However,the latest round of US-Chinese trade negotiations had ended without a deal.
- Trade war is a situation where countries restrict each other’s trade by imposing tariffs or quotas on imports.
- The trade tensions had further intensified since US had blacklisted Chinese telecom equipment company Huawei Technologies.This decision was taken after US authorities had said that there was a risk in using Huawei products as it could be used by China for illegal surveillance.
6 min read