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US increases Section 301 tariffs on China, how will the Trade War effect you; know more

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    In 2019, Robert Lighthizer, Trade Representative (USTR), addressed the U.S. – China trade issues, before House Ways & Means Committee. He testified levying of an exclusion process, on the goods falling under $200 billion, subject to 10% by and large if tariff increased to 25%

    USTR reportedly stated that exclusion of particular products from the additional duties will be considered on request. It will publish a separate notice elaborating the process and procedures for submitting such requests.

    Chinese imports at risk

    On May 8, USTR issued a federal register notice that increased the tariffs from 10% to 25% on $200 Billion worth Chinese goods. These goods represent over 5,800 products falling under third-list of Section 301 tariffs. The third-list will now join the first two lists of $50 billion in goods subject to 25% tariff.

    This move led half of the Chinese imports into the U.S to be subjected to 25% tariff. Adding more to it, Trade Representer Robert Lighthizer anticipated issue of another notice in the coming week. The notice will put light on comment period and establishing notice on 25% tariff on the unlisted Chinese imports.

    Trump’s move against China

    Increasing tariffs on Chinese goods is a move by none other than, U.S President, Donald J. Trump.

    Earlier, President Trump accused China on the national front, of backtracking on earlier commitments in the talks. It escalated the war between the two largest economies of the world – the U.S and China.

    The recent reports spoke about China going back on its promise on a number of international commitments.

    Chinese expectations saw a downfall

    On Friday, many along with Chinese were expecting the deal to remove tariffs from $2oo billion in goods. On Sunday, President Trump tweeted announcing a fresh round of tariffs coming in the way. The expectations diminished with immediate effect.

    US and China are caught in a Trade War stalemate

    To cope with things, China is reportedly planning retaliatory tariffs on U.S imports. It is also believed that China would make its retaliatory tariffs effective a minute after President Trump levies U.S tariffs on Chinese imports.

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