China threatens to retaliate against Trump tariffs

2 min read
  1. China has warned of retaliation against U.S. President announcement on imposing a fresh 10% tariff on another $300bn of Chinese goods.
  2. 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.
  3. The US had already applied tariffs of 25% on $250bn of Chinese goods. China had also retaliated with tariffs of up to 25% on US goods worth $113bn.
  4. The US is applying pressure on China to try to force it to narrow the trade deficit which is the gap between imports and exports between the two countries. 
  5. The US President has complained that China buys fewer US goods than the US buys from China.He has also accused Chinese firms of stealing US companies intellectual property.
  6. The International Monetary Fund has also said the US-China trade war is dragging on global growth.Recently,it said that the conflict would cut growth by 0.1% points in 2019 and 2020.