Washington, May 10 (UNI): The Donald Trumps administration's decision to increase 25 per cent tariff on 200-billion-dollar worth of Chinese goods took effect on Friday after trade talks failed to achieve any major breakthrough.
President Trump in a series of tweet said: "We have lost 500 Billion Dollars a year, for many years, on Crazy Trade with China. NO MORE!"
"Talks with China continue in a very congenial manner - there is absolutely no need to rush - as Tariffs are NOW being paid to the United States by China of 25% on 250 Billion Dollars worth of goods & products. These massive payments go directly to the Treasury of the US," he said.
"The process has begun to place additional Tariffs at 25% on the remaining 325 Billion Dollars. The US only sells China approximately 100 Billion Dollars of goods & products, a very big imbalance. With the over 100 Billion Dollars in Tariffs that we take in, we will buy," he added.
Trump has repeatedly slammed China for indulging in what he says are unfair trade practices, particularly with regards to access to its giant market, intellectual property and technology transfers, reported CNN.
The talks are aimed at settling the dispute, which has hurt Chinese exporters, damaged some US companies and slowed global growth since it began last July.
A Chinese delegation led by the country's top trade negotiator, Vice Premier Liu He, arrived in Washington on Thursday for the latest round of discussions.
Under the current circumstances, Liu said he "hopes to engage in rational and candid exchanges with the US side" according to China's state news agency. Liu added that raising tariffs was not a solution to the problems.
Chinese stock markets rose on Friday, with the Hang Seng index up less than 1 per cent and the Shanghai Composite more than 3 per cent higher.
However, earlier in the week stock markets had fallen after US President Donald Trump flagged the tariff rise on Sunday.
The US imposed a 10 per cent tariff on $200bn worth of Chinese products including fish, handbags, clothing and footwear last year.
Over 5,000 Chinese products facing steeper tariffs when they’re imported to the US. It includes chemicals, building materials, food, consumer goods, and a few unusual items.
Image credit: UNI
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