China-US Trade tensions seem to be increasing as the US has not taken any decision till now. Both countries have been in a trade relationship for a long time. However, the hikes in the levies for Chinese-made items are a matter of concern. The US was to impose even higher duties on the EVs and its components from 1 August. However, It was postponed further. Let us understand in detail about the China-Us Trade’s current situation.
China Wants US To Lift All Tariffs On Chinese-Made Goods
China wants the US to lift all the tariffs on Chinese-made goods. According to the Chinese Commerce Ministry, the US administration must take a decision as soon as possible. It has already delayed the decision twice. Thus, the Chinese Commerce Ministry wants the US to lift all the tariffs as it raises challenges for increasing sales through exports in the country. After facing issues of dependency on the Chinese imports of EVs, the United States decided to increase the tariffs and reduce its dependence on the country.
The United States was going to increase duties by 100% on EVs, 50% on semiconductors and solar cells, and 25% on lithium-ion batteries, steel, aluminium, ship-to-shore cranes and syringes. However, it was about to be implemented on 1 August but postponed for later. White House National Security Adviser Jake Sullivan also comes in talks with the Chinese President Xi Jinping. In India too, it has a lot of imports from China. Thus, India is also trying the same to reduce its dependence on Chinese goods. According to the Chinese administration, it is like “adding insult to injury”.
There will be a meeting for the second time between US and China for commerce and trade. According to sources, it will take place on 7 September in Tianjin. Another meeting took place a few months back in April. In conclusion, China-US trade is facing difficulties as the US has not taken any decision on the high tariffs yet. China has grown its exports a lot in the field of electronics. It is among the top exporters of all kinds of electronics.
If we talk about India only, it imports more smartphones than it manufactures itself in the country. However, smartphones have become a need now, the country started focusing on manufacturing more smartphones in India. The Chinese market can have an impact if the US does not remove the tariffs. The market will face consequences as other countries like Canada are also following the same path as the US.