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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