United States President Trump Fires First Salvo in Potential Trade War with China
In keeping with his 'America First' presidential campaign tagline, American President Donald Trump today slapped hefty tariffs on imports of solar panels and washing machines - mainly targeting China and South Korea.
The tariffs will be gradually reduced from 30% in the first year to 15% by the fourth year.
During his presidential campaign in 2016, Trump had promised to protect American jobs by preventing the influx of cheap imports.
A trade policy expert on Zerohedge suggested that "the decision to impose the tariffs is essentially the first shot in a brewing trade war with China."
China had accused the United States of disrupting the harmonious conduct of global trade by imposing the tariffs, but has not announced retaliatory action.
Trade experts on CNN Money are of the opinion that "it's too early to determine whether the world's two largest economies are destined for a damaging escalation of trade measures against each other."
Let us fervently hope that the United States and its major trading partners can eventually negotiate mutually beneficial trading arrangements, rather than allow protectionist policies to strangle the global economy.
@originalworks
Not just China and S. Korea, but Mexico was included too, companies like Flextronics build solar panels and Electrolux builds washing machines in Ciudad Juarez.
Indeed. All imports of solar panels and washing machines will be under the radar.