U.S. President Donald Trump has escalated the trade war between the U.S. and China to a new level by imposing another 10% tariffs on Chinese goods worth 200 billion dollars ahead of the trade talk that is supposed to be held by the end of this month.
Luckily, the U.S. has removed about 300 goods from a previously proposed list of affected products, including Apple’s smart watches, some chemicals, and other products such as bicycle helmets and high chairs.
The iPhone was not among the ‘wide range’ of products that Apple told regulators would be hit by the $200 billion round of tariffs in a September 5 comment letter to trade officials.
Earlier, the U.S. had imposed tariffs on 50 billion dollar worth of Chinese products to pressure China to make sweeping changes to its trade, technology transfer and high-tech industrial subsidy policies. However, the pressure did not bend China, but escalate tension between the two countries even more.
Trump also warns China after the new round of tariffs that if China has any retaliatory actions, the U.S. will impose more tariffs on the Chinese goods worth 267 billion dollar. This time the iPhone and its competitors would not likely be spared.
Collection of tariffs on the long-anticipated list will start September 24 but the rate will increase to 25% by the end of 2018.
This never-ending war will surely and severely crush the global market sooner or later.