The US President Donald Trump's recent move to increase tariffs on Chinese goods has deepened the trade war between China and America. Because of this, the American stock markets have fallen drastically. On Friday, the Dow Jones Industrial Average dropped by 623 points. The S&P 500 and Nasdaq 100 futures have also declined. On Monday, it will have an impact on other markets of the world including India. China has strongly opposed the increase in tariffs by the US.
On Friday, Trump had tweeted after the market closed that he would increase the tariff, i.e., import tax from 25 to 30 percent on about $ 250 billion worth of sugar. He said that in addition to this, tariffs on other Chinese goods of about $ 300 billion will also be increased from 10 to 15 percent. 30 percent tariff will be applicable from October 1 on goods worth $ 250 billion. Similarly, tariffs on goods worth $ 300 billion will be effective from September 1 and December 15.
Trump said in a tweet, "The sad thing is that the previous administration gave China the scope to move beyond fair and balanced trade, which has cost the American taxpayer dearly." As a president, I will not allow this to happen now.
Later, at the G-7 summit held in Biarritz, France, Trump said that he wanted to impose more tariffs on Chinese goods and regretted not doing so. He even said that he had declared Trade War as a national emergency.
China strongly opposed the increase in tariffs by the US. According to news agency IANS, John Ross, former head of the London Economy and Commerce Policy Office in Britain, said in an interview that the US inexplicably raised tariffs against Chinese goods, an inevitable response to China's anti-incumbency.
According to renowned scholar Saurabh Gupta of Sino-US research center in America, it is not unexpected to take anti-Chinese steps. China's move gave important information to the outside world, that is, business negotiations should be on the basis of equality of sovereignty. China will not unilaterally abandon the tariff step to achieve a fair competition environment for itself.
