In retaliation to Trump administration’s recent tariff hike on Chinese goods, China announced that it will raise tariffs on $60 billion worth of US goods, National Review has reported.
The new tariffs ranging from 5 to 25 per cent will target hundreds of US products including coffee, batteries, and spinach.
Late last week, the Trump Administration raised tariffs on $200 billion of Chinese imports from 10 to 25 per cent.
The White House accused China of reneging on terms for a trade deal which both the nations had previously agreed to.
The US had earlier slapped 25 per cent tariff on $50 billion worth of Chinese high-tech products.
In a series of tweets, President Trump rebuffed suggestion from his own economic adviser that both the US and China will suffer consequences of their tit-for-tat trade war.
“The unexpectedly good first quarter 3.2 per cent GDP was greatly helped by Tariffs from China. Some people just don’t get it!”, Trump tweeted.
Trump's top economic adviser, Larry Kudlow had earlier this week remarked that “both sides will pay in these things”.
However, Kudlow added that China’s gross domestic product will be hit “with respect to a diminishing export market” and that “this is a risk we should and can take without damaging our economy in any appreciable way”.
“There is no reason for the US consumer to pay the Tariffs, which take effect on China today,” he said, adding that businesses and consumers can completely avoid the tariffs by buying from a country that does not impose them, such as the US.
Trump also warned China not to continue retaliating as it will only hurt their economy.
“China has taken so advantage of the US for so many years, that they are way ahead (Our Presidents did not do the job). Therefore, China should not retaliate-will only get worse!” he added.
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