Business tension between the US and China has been in the news since 2018. The root of this dispute is associated with trade balance, technical transfer and industrial policies between the two countries. In April, US President Donald Trump increased the tariff on Chinese goods by 145%, in response to which China imposed a 125% duty on US imports. This became a situation in which the economy and global supply chains of both countries came under pressure. The two sides agreed to temporarily reduce tariffs after negotiations in Geneva and meetings in London in June. However, this relief proved to be short -lived, as the deadline for putting high tariffs again in August was approaching.

According to the Reuters report, an official of the White House confirmed that President Trump has extended the tariff’s deadline for 90 days by signing an executive order. This decision was taken by Trump a few hours after postponing the questions of journalists, in which he was asked if he would carry forward the deadline of August 12. Trump appreciated China’s cooperation on the occasion and said, “We will see what happens.” This indicates that the conversation between Washington and Beijing is still going on and both sides are looking for a permanent solution.

Current tariff rates and economic impact
Currently, 30% tariffs are applicable on imported goods from China, including 10% Aadhaar rate and 20% phynell-related additional tariffs. These tariffs were imposed by the US in February and March. On the other hand, China has reduced its rate on US imports to 10%. Economic analysts believe that tariff expansion will not only affect the GDP of the two countries, but will also increase uncertainty in global markets. Investors will adopt a cautious stance, while the cost of companies dependent on import-export may increase.

Potential future and global reaction
If there is no concrete agreement in the coming 90 days, then the tariff rates can again go to a higher level, which can lead to a huge decline in global trade. America’s leading business partners and international institutions such as WTOs can try mediation to end the dispute. Experts believe that this deadline expansion is a strategic break, which will give the two countries a chance to resolve issues through dialogue, but if the agreement is not reached then it can start the “Trade War 2.0”.

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Us on tariff: The US has decided to impose 125 percent tariffs on goods coming from China. This was announced by President Trump himself on Truth Social, while Trump has stopped the tariffs imposed on 75 other countries for 90 days. Trump said that all these countries are ready to talk with America.

US Finance Minister Scott Besant said during a press briefing at the White House on Wednesday (April 9) that India is a country that is at the forefront to talk with us on tariffs. He said on 125 percent tariffs imposed on China that this step was taken because China is doing business wrongly in the global market. China’s economy is creating imbalance. This tariff is not only for China, but also for those countries that violate trade rules.

Finance Minister Scott Besant emphasized that such a step will pay attention to all countries like China, which are creating imbalance in global economy. He further said that in the midst of tariff announcements, our main negotiations about the trade issue are being held with India, Japan and South Korea, all of them are neighbors of China. We want to talk to all those countries on the issue of tariffs, who will come forward and propose our proposals, we will also give them awards. We are considering reducing the already implemented tariffs to 10 percent for them.

World looking towards America- Caroline Levitt
White House press secretary Caroline Lewit said during the press briefing that the world is looking not towards China, but towards America, because they need our market. He further said that the media ignored the art of “The Art of the Deal”, but in reality the rest of the world is now getting away from China and closer to America.

China reverses America
After the US imposed 104 percent tariffs, China had increased the 34 percent tariffs imposed by 50 percent, after which the figure increased to 84. After this decision, the US announced to impose 125 percent tariffs on China. Along with this, it was also decided to stop the tariffs on the remaining 75 countries for 90 days. The 125% tariff on China by the US is a sign of the beginning of the new era of global trade. This step is an extension of President Trump’s “America First” policy. However, in the coming months it will be clear that this conflict increases stress or gives rise to new business balance.

Us china trade war: Some Chinese exporters have taken a big step amidst faster trade war between China and America. They are leaving their goods in the middle of sea travel and surrendering containers to shipping companies. They are doing this to avoid America’s new heavy tariffs. The people of the industry are calling it a “preparation of long march”, that is, a long and difficult economic recession.

“50 to 3-6 containers a day”

According to a report by South China Post, an employee of an export company listed in China said that after the new tariff of the Trump government, his daily shipment to America has fallen from 40-50 containers to only 3-6 containers. The US has imposed an additional 104 per cent tariff on Chinese goods, causing the total tariff to reach 115 per cent. These new tariffs have made Beijing angry and stirred up global markets. There is a fear that this may sprinkle a trade war.

“Goods reached the sea also cancell”

The company’s employee said, “We have stopped all shipping plans from the Philippines, Vietnam, Indonesia and Malaysia. Every factory order has been canceled. The goods that have not been loaded yet, are being scored and which is in the sea, a new price is being paid.” A client told the company that it is leaving the goods already sent to the sea and giving it to the shipping company, because “no one will buy it after the tariff.”

“Damage on every container”

The employee said, “Now every container is suffering so much loss as earlier that there was a profit from 2 containers. Who will do this work?” China’s exporters are now turning to Europe and Japan instead of America, so that the storm of trade war can be avoided.

American buyers are also retreating

China is the world’s largest exporter and sent $ 439 billion goods to the US last year, while the US exported only $ 144 billion to China. But now American buyers are also retreating due to fear of inflation. Some manufactures say that 300 containers are being canceled daily.

Factors cut, fear of going jobs

Exporters are reducing their operations due to new tariffs and uncertain markets. In many factories, working hours are being reduced and employees are being asked to work in low shifts. The American branch of the company whose employee was talking has started trimming the frontline workers, as the demand has been badly affected.

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