A potential implementation of the threat for new tariffs on china will probably be a huge hit.
The threat came on Tuesday from U.S and stated a 10% tariffs on $200 billion worth of Chinese imports.
According to chief economist Rajiv Biswas United states is targeting specific key manufacturing export industries like cotton, steel and Refrigerators .The reasoning behind the potential tariffs on these goods is to target the metal products, auto parts as well the electronics and textiles manufactures.
Rajiv Biswas said “For China, the US is its largest export market, accounting for 19% of total Chinese exports. Therefore, if the US escalates its tariff measures to an additional USD 200 billion of products, this would mean that around half of Chinese exports of goods to the US would face significant US punitive tariff measures,"
And added “China’s export sector will therefore suffer a significant deterioration in export competitiveness to the US compared to other emerging markets’ manufacturing exporters, such as Vietnam, South Korea, Thailand, Bangladesh, Mexico and Brazil,” he added.
One possible scenario for these tariffs could be the intention of the United states to hit the "Made in China 2025" program which is a plan for China to become one of the big players and have a key role in the global industries expert at Mizuho Bank said.
Now the tariffs will not implemented immediately but will go through a 2 month review process.
China on the other hand implemented counter tariffs on the US afterward.
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