- United States has raised tariffs on $200 billion of Chinese goods to 25% because trade talks are moving too slowly.
- Tariffs are taxes paid by importers on foreign goods so the 25% tariff will be paid by US companies who bring Chinese goods into the country.
- These tariffs were raised as U.S and Chinese officials have resumed their trade negotiations to end the trade war between both the countries.
- Trade war is a situation where countries restrict each other’s trade by imposing tariffs or quotas on imports.
- The two countries are attempting to reach a trade agreement that would address U.S. concerns about Chinese business practices including intellectual property theft and state-subsidized companies.
- 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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