Newly elected president Donald Trump has already begun his trade war on foreign countries within a few weeks of reaching office. Countries like Mexico and Canada have had tariffs placed on them with the hope that America can enact more political influence on them. Although other countries are being taxed, it seems as though the real target is China.
China has responded with its own retaliatory tariffs that target the U.S. automotive industry. Trump threatened more retaliatory tariffs that went into effect in April of this year.
In April alone tariffs have risen 145% on China. Not all items are privy to this tax, but even the ones exempt are still facing a 20% tariff referred to as a fentanyl tariff.
Scott Besset the U.S. The Treasury Secretary believes that China and the U.S. will have talks later this year to settle the trade war between the two countries. As of right now though, no talks have been initiated and hostilities between both countries remain high.
China’s Minister of Commerce also believes that talks between the two countries are inevitable. He said that, “China firmly opposes any party reaching a deal at the expense of China’s interest” which leads him to believe that the talks will favor China or no resolution will be met.