Trump again gave a blow to China on the trade front, increased the import duty to 145 percent

New Delhi. US President Donald Trump has once again given a blow to China on the trade front. On Thursday, he increased the import duty on Chinese goods to 145 percent. This decision was taken after China imposed a retaliatory duty of 84 percent on American goods. According to a Bloomberg report, this information has been given in a White House memorandum.

Earlier, the Trump administration had imposed a 20 percent duty on China for its alleged role in fentanyl smuggling. Trump had announced an import duty of 125 percent, aimed at reducing America’s trade deficit and responding to the duty imposed by China on American imports.

According to the latest policy issued by the White House, 145% import duty has been imposed on all goods coming from China. A 25% duty will be imposed on aluminium, automobiles and items outside the scope of USMCA (US-Mexico-Canada Agreement). A 10% duty is also applicable on all other imported goods.

“There will be a cost to some changes during this time, but in the end it will prove to be a beautiful thing. We are in a very good position,” President Trump said during a cabinet meeting on Thursday.

Next phase of trade war?
Trump’s policy is part of his “America First” approach, which aims to bring American companies within the country, promote domestic manufacturing and establish trade balance. However, experts believe that these high duties may burden consumers with price hikes and affect the global supply chain.

A day earlier, Trump had also announced that a 90-day relief is being given on some duties for most countries, but this relief will not be there for China. A new 125% duty on China was imposed effective from the same day, which has now been further increased to 145%. Now it remains to be seen how China responds to this move and what impact it has on global trade.