As per the US President Donald Trump, China was found guilty of breaching the treaty of trade talks and this boosted malice between the two.
Beijing stated it will reciprocate with a significant expedient if the US moves ahead to increase the tariff rates on Chinese goods. Trump seems to have pledged to double the duty rates on $200bn of Chinese products.
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Following discussions between the US and China on May 9, President Trump continued to blame Chinese leaders for breaching the treaty. China’s coming forward for negotiations for the trade treaty is a genuine aspiration that they will be easily negotiating with Joe Biden or other frail democrats after which they will keep on tricking the US for a considerably long period.
Recently, the two anticipated to jump on an agreement which will halt the trade battle. But, Donald Trump proclaimed on Twitter to hike up the tariff date by $200bn on Chinese products in the coming week and will put up new tariff rates. The trade war has created mayhem in the financial markets. This week, the world stock market drastically fell because of high tariff rates. The Hang Seng index witnessed a drop of 2% and the Shanghai Composite was decreased approximately to 1.5%.
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Lighthizer launched a formal notice declaring that tariff rates on Chinese goods will hike up to 25% on 10th May 2019. If they move forward with their decision, China will reciprocate similarly. According to Trump’s statement, the US will also impose $350bn of Chinese products with 25% duty in a short span. Both of them have already foisted duty on a huge proportion of goods, developing risk for businesses and shaking the world’s economy.