In an unexpected move following China’s ban on exports of rare earth minerals, US President Donald Trump announced a 100 percent tariff on Chinese products. The U.S.-based critical software will also be subject to strict export control regulations starting November 1.
Photo Credit- The Hindu
The unprecedented move of the US President has deepened the U.S.-China Trade War. While justifying its decision to ban the export of rare earth minerals, China earlier stated that exporting rare minerals worldwide is a ‘moral disgrace’.
In a post on Truth Social, Donald Trump blamed China for taking an ‘Extraordinarily Aggressive’ stance and then warned that the US would respond accordingly. Trump’s announcement can affect global Financial Markets as it has instigated a new U.S.-China Trade War.
Effects of the US-China Trade War on the Asia-Pacific Economic Cooperation Summit
Mr. Trump, while posting, did not cancel the ongoing meeting with Mr. Xi, but hinted at something unusual. He posted, ” I was to meet President Xi in two weeks, at APEC, in South Korea, but now there seems to be no reason to do so.”
The US President blamed the Chinese President, stating, ” They [China] are becoming very hostile, and sending letters to countries throughout the World, that they want to impose Export Controls on every element of production having to do with Rare Earths, and virtually anything else they can think of, even if it’s not manufactured in China.”
He hinted that the U.S.-China Trade War will definitely create turmoil at the Asia-Pacific Economic Cooperation Summit if China doesn’t make amendments to the recent restrictions.
Conclusion
The US President is popular for taking bold decisions. Recently, this year, he announced an increase in the tariff on Indian products. The new US-China Trade War can have dangerous effects on the global economy, pushing the world into financial insecurities.
Chinese products will be under a 100 percent tariff increment, depending on any further actions or changes taken by China.