U.S. to hike tariffs on $200 bn of Chinese goods

  1. United States has announced that it would raise tariffs on $200 billion of Chinese goods to 25% because trade talks are moving too slowly.
  2. The United States and China are currently discussing a trade deal.The deal would end the trade war between both the countries that has been escalating since last year.
  3. Trade war is a situation where countries restrict each other’s trade by imposing tariffs or quota on imports.US had started imposing tariffs on as much as 25% on Chinese imports.China too responded with retaliatory tariffs of 25% on US goods including on soybean, automobiles and marine products such as lobsters.
  4. The US has asked China to(a)lower tariffs for American goods (b)ease restrictions on American goods such as on farms,automobile and chemical products (c)lower barriers that would allow US companies to operate from China and (d)Reduce huge US trade deficit with China.
  5. In return China has asked the US to remove all the trade sanctions which it had imposed on China since 2018.

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