American president Donald Trump’s new policies would lead to imposition of several tariffs on goods imported from China which stood at $505.6 billion in 2017. He ordered his trade negotiator to consider imposition of tariffs on Chinese products amounting to $100 billion which is likely to further escalate the trade war between both nations by several notches. Trump’s move was prompted by China’s new tariffs on $ 50 billion worth of US goods that includes a wide range of products like soyabeans and small aircraft. Trump said that he was pushed to impose these tariffs as China’s tariffs were harming American manufacturers and farmers.
Though his action is likely to lead to more acrimony between both nations, allies of both nations that are praying for an early solution to the problem now realize that the fight is not likely to end soon. This latest escalation between two of world’s largest economies that together account for almost 40% of global economy shows that the acrimony is not likely to end soon. Though the stock markets were closed during release of Trump’s statement by the White House on Thursday about additional tariffs, Dow futures fell by an alarming 300 points.
Stock traders on Wall Street predicted that markets are likely to open at a lower level on Friday and the trade war is not likely to abate soon. The announcement of these new tariffs are likely to affect consumers in both China and United States who will now have to dish out more money for several daily use items. Business communities on both sides are urging both president Trump and Xi Jinping to have a formal discussion and end the tariff escalation before it becomes effective as it could have far reaching effects on jobs and businesses. Financial markets and American public are confused about latest declaration as Trump has a tendency to issue statements on social media which is then modified by his aides.