The United States is now planning to impose new tariffs on all of the Chinese products imported I their country if the talks between the United States President, Donald Trump and the President of China, Xi Jinping do not succeed in reconciling the dispute between the two nations regarding the trade.
According to a report by Bloomberg the announcement regarding the new taxes could be made earliest by December targeting the remaining imports from the nations of Asia that have not yet have been subjected to these tariffs on goods from China.
The US stock was affected by this report and it fell almost immediately. The shares of Boeing which is the global aerospace and aircraft fell by 6.5 percent at the time of closing which has been its worst day since February 2016.
The Dow Jones Industrial Average witnessed a fall of more than 200 points in the wake of the trade news eliminating the gain of 350 points in the previous session. The Standard and Poor’s also accounted a fall of 0.6 percent after the news.
The new tariff actions if taken by the administration would then be the final step in pushing the Chinese leadership to negotiation table by putting a pressure on the Chinese goods.
The administration has already imposed a tariff of 10 percent on Chinese goods worth $200 billion this September and the rate is set to elevate by 25 percent by the end of the year. In response to this, Beijing has imposed taxes on the goods imported by the United States which are worth $60 billion.
The two nations have taken the trade war to another level through tax impositions with China targeting goods of US like coal, grease, etc and US targeting items from China such as furniture and appliances.
Source: CNBC, Forexfactory
