The trade war between the PRC and the United States is gaining momentum. In China, on Saturday, June 1, new duties on US $ 60 billion worth of goods began to apply. New tariffs have been introduced for more than 2.5 thousand types of American goods - duties on them have been increased by 20 or 25 percent, Reuters reports. Earlier, Beijing has already raised duties on half of its imported American goods by 5 and 10 percent. Beijing said earlier that this "adaptation" is a "response to the unilateral US trade protectionism."
No trade talks between the US and China are scheduled for today. This increase in duties by the PRC was a response to similar actions by Washington. On the night of May 10, 2019, US President Donald Trump announced an increase from 10 to 25 percent in import duty rates on Chinese goods totaling $ 200 billion. Previously, more than $ 50 billion worth of goods from China was subject to a 25 percent import duty.
Later, Trump also ordered the start of the process of expanding customs duties on almost all imports of goods from China to the United States, which have not yet affected the previous increase in import duty rates. The move will affect imports of goods from China totaling $ 300 billion.
Recall that US-China relations have deteriorated after the US Department of Commerce blacklisted a large Chinese telecommunications company Huawei and related firms for "activities contrary to national security" of the country. After that, the PRC announced its intention to create its own blacklist of companies and persons who will be prohibited from working with Chinese firms.
A few days ago in the American media there were reports that as a result of the further exacerbation of the trade war, the United States may be left without Chinese rare earth metals, which account for 80 percent of all the needs of the United States military, aerospace and automotive industries. In addition, Beijing holds more than $ 1 trillion in US Treasury bonds, the sale of which could bring down the American economy.
