WASHINGTON: The ongoing trade war between the United States and China has escalated, with former President Donald Trump issuing an executive order to impose tariffs of up to 245% on Chinese goods.
The move comes in response to China’s retaliation, which has chosen to retaliate rather than engage in negotiations, according to a White House statement. “China has left us no choice,” the statement said, adding that the new tariffs are intended to protect American industry, technology and national security.
The sweeping tariff package includes three key components: a 125% bilateral tariff, a 20% levy to address the fentanyl crisis, and an additional 7.5% to 100% duty under Section 301 targeting certain Chinese products.
Trump has also eliminated existing exemptions and loopholes in the steel and aluminum tariffs, restoring the flat 25% rate. The White House drafted the executive order as part of a broader strategy to correct “unfair and unreciprocated trade deals” and align US trade policy with the national interest.
The administration further revealed that Trump has signed a memorandum to address issues such as digital services taxes, penalties on foreigners and discriminatory policies targeting US firms.
While 75 countries have reportedly approached Washington for talks on the issue of rising tariffs, the White House claims that China has been the most vocal in refusing to talk.
However, economists have warned of the potential consequences. They argue that such aggressive measures could lead to higher consumer prices, strained global trade relations and disruptions to international supply chains.
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