Joe Yates
The White House has announced that China is now facing even higher tariffs as President Donald Trump continues to impose the changes first announced on Liberation Day.
It comes as the 78-year-old Republican signed an executive order 'launching an investigation into the national security risks posed by US reliance on imported processed critical minerals and their derivative products', yesterday (April 15).
Chinese President Xi Jinping and Trump have been locked in a brutal trade war that has left businesses native to each country that supply to one another in a position where it is almost impossible to continue trading.
Just days ago, China announced that it was raising tariffs imposed on the US from the additional 84 percent tariff hike to an eye-watering 125 percent.
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Explaining the tariffs that the US has imposed on the East Asian country, the White House wrote: "This Executive Order builds on previous actions taken by the Trump Administration to ensure U.S. trade policy serves the nation’s long-term interests.
"On Day One, President Trump initiated his America First Trade Policy to make America’s economy great again. On Liberation Day, President Trump imposed a 10% tariff on all countries and individualized reciprocal higher tariffs on nations with which the U.S. has the largest trade deficits in order to level the playing field and protect America’s national security.
"More than 75 countries have already reached out to discuss new trade deals. As a result, the individualized higher tariffs are currently paused amid these discussions, except for China, which retaliated."
It continued: "China now faces up to a 245% tariff on imports to the United States as a result of its retaliatory actions. President Trump signed proclamations to close existing loopholes and exemptions to restore a true 25% tariff on steel and elevate the tariff to 25% on aluminum.
"President Trump unveiled the “Fair and Reciprocal Plan” on trade to restore fairness in U.S. trade relationships and counter non-reciprocal trade agreements. President Trump signed a memorandum to safeguard American innovation, including the consideration of tariffs to combat digital service taxes (DSTs), fines, practices, and policies that foreign governments levy on American companies.
"President Trump signed similar Executive Orders launching investigations into how imports of copper and imports of timber, lumber, and their derivative products threaten America’s national security and economic stability."
There may be method in the madness of starting a trade war with the world, in the sense that Trump is hoping for a level playing field with many countries slapping higher taxes on US imports than any other country, it is a cause for concern for everyday Americans.
Trump believes the pressure from the tariffs will eventually see the trade barriers reduced on US goods, while also hoping for more products to be produced domestically to greatly increase the American economy.
But while the US holds-on-hope, it must first brace for retaliatory tariffs - with costs passed onto consumers in the nation.