US imposes new tariffs for trade in China

Getty Images

New rates of dollars, about 16 billion (£12.4 billion) of Chinese goods have entered into force, in an escalation of their war business.

A total of $50 billion, realized the value of imports will now be taxed in this second round, raising expectations that China will retaliate.

From the moment that the opening salvo in the month of July, the tensions between the world’s two largest economies have worsened, damaging their companies and economies.

Officials of both the countries are holding talks in Washington.

But hopes are not high that will bring a change.

The new rates of entry into force:12: 00 Beijing time (05:00 BST). The 25% tax will affect almost 280 Chinese goods, including chemical products, agricultural machinery, motorcycles and antennas.

The move completes the series of the rates to $50 billion, made of Chinese goods, the USA initially for the tax.

China has warned that it will again react with the 25% of the price dollars, about 16 billion of products, including coal, medical instruments, cars and buses.
Bikes, cribs, and refrigerators: the imports affected by the Trump rates
US-China trade row: What has he done so far?
The first victims of Trump’s trade war
Six ways China could react in a trade war

Washington second round of tariffs takes place in spite of the testimony of the US Trade representative’s Office from dozens of American companies and industry groups.

Many have said that the new tax would hurt their business, and warned that it would not be able to absorb another tax, without an increase in prices for american consumers.

Getty Images

However, the approximately $16 billion is a drop in the ocean compared to the amount of Donald Trump reported could be struck. The president said in July it was ready to set all of the $500bn value of Chinese imports in the US.Impact felt more far away

Karishma Vaswani, Asia correspondent

What hurts Beijing can also cause damage to the most distant countries.

Many of the goods that are necessary for the final assembly in China, actually come from other South-East Asian countries like Malaysia and Indonesia, and go through Singapore to have some other add-on products.

Economists say that means that some of the countries of the Asia-Pacific region could see as much as a percentage point shaved off the economic growth.

International trade is what has helped Asia transformed from an economic stagnation in one of the most dynamic and fast-growing areas of the world. Is raised millions of people out of poverty.

But if the trade war continues – the outlook may be much more sad.

The UNITED states has threatened a third round of tariffs on a further $200bn of Chinese goods and to be able to return as soon as next month.

He said that these products could be hit with a 25% levy – more than double the 10% that was initially expected.

China has said that it would respond with another fee to $60 billion dollars of goods.

But it would be more difficult for Beijing to match the threat of the USA, because the manufacturers export a lot more products that Us companies send to China.

The US Trade representative’s Office is holding hearings this week on the likely impact of more rates.0

China has accused the U.S. of “unilaterally” heightening tensions between the two economic giants.

There are signs that the trade war is already having an impact.

The major automotive manufacturers, recently warned that changes to the trade policies were hurting the performance.

The International Monetary Fund said last month that an escalation of the tit-for-tat tariffs could shave 0.5% to global growth by 2020.