Washington. US President Donald Trump is preparing to impose a new tariff on China. According to people associated with the matter, this step is being taken after China was accused of flooding the global market with low-priced goods. The proposed fee could be 7.5 percent, although the final decision has not been taken yet.
It is being told that the US administration wants to set such a level that the ongoing one-year trade agreement between America and China will not be affected. Also, it should not affect the proposed meeting between Trump and Chinese President Xi Jinping at the end of September.
Will the new tariff be imposed on China on top of the duty already imposed?
The proposed new duty would be in addition to the tariffs already imposed on China. Last month, America had announced tariffs ranging from 10 to 12.5 percent on goods coming from about 60 economies of the world. These countries were accused of not effectively enforcing the ban on products made with forced labour. Many countries including China had opposed this move.
-
Read this also UN Chief said – China and America cannot impose arbitrariness, India's influence is increasing
America eyes China's 'overcapacity'
In March, the Trump administration launched a formal investigation into the laws to excess industrial capacity and forced labor in several countries, including China. China is being investigated under Section 301 of the US Trade Act. America alleges that China has excess production capacity in many industries, due to which the supply of low-cost products is increasing in the global market. Its trading partners have expressed concern over China's large production capacity in sectors such as automobiles, solar panels, cement and steel. China, however, has rejected the allegations of overcapacity.
China's trade surplus at record level
Due to slow domestic demand in China, many companies have turned to foreign markets. This increased the country's exports and last year China's trade surplus reached a record level of about $1.2 trillion. China's Commerce Ministry has said that China has never aimed to have a large trade surplus.
Trump increases tariff pressure on Canada too
Meanwhile, Trump has also announced to increase tariffs against Canada. He said that from January 1, 2027, the duty on cars, trucks, auto parts and steel coming from Canada will be increased to 50 percent. Trump accused Canada of imposing high tariffs on American agricultural products and unfair trade with the US. He also talked about giving exemption from tariffs to companies if they start production in America. The US President said that the current trade relations with Canada are not sustainable and now Washington will not give it the same priority as before.
Canada will impose counter-tariff today
Canada will announce retaliatory tariffs against the US on Tuesday. An officer associated with the case has given this information. Due to this, there is a possibility of further deepening the already ongoing trade dispute between the two countries. This step is being taken at a time when tensions between the two countries have increased rapidly after the breakdown of trade talks between US President Donald Trump and Canadian Prime Minister Mark Carney.
Carney accused the US of trying to take over Canada. He said America's trade demands during the talks strengthened Canada's fears that Washington wants to weaken the country's key industries. Referring to sectors like automobile, steel and aluminium, he said that Canada will not accept a situation in which it is seen as a subsidiary of America.
