The US has refused to back down from trade dispute with China
The US has refused to back down from its ongoing trade dispute with China. Instead it has warned of doubling existing tariffs on Chinese imports and says it will take decisive action to address its imbalance with China. The country has imposed tariffs on $250 billion worth of Chinese imports this year to force concessions on a list of demands that would change the terms of trade between the two countries.
The current tariff rate is set at 10 per cent but is due to increase to 25 per cent on January 1, if a deal is not struck in the meantime. China has responded with a subtle warning the US risks closing itself off from the world and has been joined by a number of other Asia-Pacific leaders in urging free trade.
China is willing to expand imports from the US if the US is willing to meet it half way in trade negotiations. For China boosting imports is an established strategy and China doesn’t want to escalate trade tensions with the US. The country has offered to boost purchases of US goods by about $25 billion this year ahead of a mid-June deadline for imposing tariffs on Chinese imports.