US-China Trade Dispute: Increased Tariffs with Room for Negotiation

(Patria) – The United States has increased tariffs by 25 percent on Chinese goods worth over 200 billion US dollars.

President Trump's decision has been in effect since Friday, and China has already announced that it will take 'necessary countermeasures'.

Trump briefly explained his decision: 'China broke the deal.'

A trade war of sorts between the world's two largest economies has been ongoing for ten months, along with negotiations to find a solution to the crisis.  

Following the last round of negotiations held on Thursday, the Chinese representative stated that the dialogue would continue, and expressed hope that the US would 'meet China halfway, make joint efforts, and resolve the issue through cooperation and consultation'.

The day after the negotiations, US 'Customs and Border Protection' imposed a 25 percent tax on goods exported to the US that were scheduled to leave China on Friday afternoon (4:00 PM).

The increased tariffs apply only to goods leaving China after the deadline, and only come into effect once the shipment arrives in the US, leaving considerable time for negotiations.

Information from the White House indicated that negotiations would continue on Friday.

Goods shipped from Chinese ports and airports before midnight are subject to the previous 10 percent tariff.

Investment banker Goldman Sachs commented on the decision, stating that it 'creates an unofficial window of perhaps two weeks for continued negotiations, and also creates a 'softer' deadline for reaching an agreement, although challenges remain...'.

The tax increase has led to significant stock market fluctuations, alarming investors who are concerned that the continuation of the trade war could threaten economic growth.