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| Version 5 | Version 6 |
|---|---|
| A quick guide to the US-China trade war | A quick guide to the US-China trade war |
| (3 days later) | |
| The US and China are locked in an escalating trade battle. | 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. | 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. | 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, both countries agreed to halt new trade tariffs in December to allow for talks. | After months of hostilities, both countries agreed to halt new trade tariffs in December to allow for talks. |
| Optimism had grown over the prospect of a deal, but that faded, and now the US has more than doubled tariffs on $200bn (£153.7bn) worth of Chinese products. | Optimism had grown over the prospect of a deal, but that faded, and now the US has more than doubled tariffs on $200bn (£153.7bn) worth of Chinese products. |
| Beijing retaliated three days later with tariff hikes on $60bn of US goods. | |
| What tariffs are in place? | What tariffs are in place? |
| Last year, the US imposed three rounds of tariffs on more than $250bn worth of Chinese goods. | |
| The duties of up to 25% cover a wide range of industrial and consumer items - from handbags to railway equipment. | |
| Beijing hit back with tariffs on $110bn of US goods, accusing the US of starting "the largest trade war in economic history". | 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%. | China has targeted products including chemicals, coal and medical equipment with levies that range from 5% to 25%. |
| It has also targeted products made in US districts with strong support for the Republicans, and goods that can be purchased elsewhere, such as soybeans. | It has also targeted products made in US districts with strong support for the Republicans, and goods that can be purchased elsewhere, such as soybeans. |
| After agreeing a truce in December, both sides began to talk. | |
| But on Friday the US raised tariffs on $200bn of Chinese products to 25% from 10%. China retaliated but officials say the countries are still talking. | |
| The US has also started the process for hitting an additional $300bn of Chinese goods with tariffs. | |
| Why tariffs? | Why tariffs? |
| Tariffs imposed on Chinese goods, in theory, make US-made products cheaper than imported ones, and encourage consumers to buy American. They are also increasingly seen as a negotiation tactic in the trade war. | |
| 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 have rattled investors and hit stock markets. | Fears about a further escalation have 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. |