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A quick guide to the US-China trade war | A quick guide to the US-China trade war |
(25 days later) | |
The US and China are locked in an escalating trade battle. | |
US President Donald Trump has complained about China's trading practices since before he took office in 2016. | |
The US launched an investigation into Chinese trade policies in 2017. It imposed tariffs on billions of dollars worth of Chinese products last year, and Beijing retaliated in kind. | |
After months of hostilities, a breakthrough of sorts came in December. Both countries agreed to halt new trade tariffs for 90 days to allow for talks. | |
They imposed a deadline of early March to resolve their differences, or the battle may heat up again. | |
What tariffs are in place? | What tariffs are in place? |
So far, the US has imposed three rounds of tariffs on Chinese goods, totalling more than $250bn. | |
The duties range from 10% to 25% and cover a wide range of industrial and consumer items - from handbags to railway equipment. | |
President Trump has threatened tariffs on another $267bn worth of goods - meaning all Chinese imports could be subject to tariffs. | |
The US has also put tariffs on worldwide imports of goods like steel and washing machines, which further affects products from China. | The US has also put tariffs on worldwide imports of goods like steel and washing machines, which further affects products from China. |
Beijing hit back with tariffs on $110bn of US goods, accusing the US of starting "the largest trade war in economic history". | |
China has targeted products including chemicals, coal and medical equipment with levies that range from 5% to 25%. It has strategically targeted products made in Republican districts, and goods that can be purchased elsewhere, like soybeans. | |
Why tariffs? | Why tariffs? |
Tariffs, in theory, make US-made products cheaper than imported ones, and encourage consumers to buy American. | Tariffs, in theory, make US-made products cheaper than imported ones, and encourage consumers to buy American. |
What is the impact so far? | What is the impact so far? |
Both US and international firms have said they are being harmed. | Both US and international firms have said they are being harmed. |
Fears about a further escalation has rattled investors and hit stock markets. | |
The IMF warned a full-blown trade war would weaken the global economy. | The IMF warned a full-blown trade war would weaken the global economy. |