US implements 25 per cent tariff
Threatened increase in tariffs on Chinese goods now in place with deal still pending between US and China
US president, Donald Trump, has implemented taxes of 25 per cent on US$200bn worth of goods, including cauliflower, carrots, leeks, turnips, mushrooms, garlic, onions, nuts, peaches, strawberries, raspberries and cranberries.
Tariff increases came into play last Friday 10 May, up from a previous 10 per cent. South China Morning Post reported goods already bound for the US from China will not need to adhere to the 25 per cent tax providing they can prove goods were purchased before last Friday.
The decision has come after the US and China could not reach a trading agreement, following a year of back and forth turmoil, ignited by increased tariffs on steel and aluminium imports from China by Trump.
BBC News reported that Deborah Elms, executive director at the Asian Trade Centre was quick to point out that the rise in tariffs is likely to have a negative effect on US companies and consumers.
“Those are all US companies who are suddenly facing a 25 per cent increase in cost, and then you have to remember that the Chinese are going to retaliate,” she said.
Following the increase on US$200bn of goods, Reuters reported Trump has ordered a tariff hike on all remaining imports from China to the US, which will impact an additional US$300bn of goods. The final decision on this order has not yet been made, according to reports.
Author: Camellia Aebischer
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