Hikes tax rate on Chinese exports to 125%
PIONEER NEWS SERVICE
Coming off his high horse, President Donald Trump backed down on his reciprocal tariff move on most nations for the coming 90 days. In the same breath, he said that he had hiked the tax rates on the Chinese exports to 125 per cent. Explaining his abrupt climb-down, Trump wrote in a post that with more than 75 countries having reached out to the US government for trade talks instead of taking recourse to retaliatory measure, he had authorised a 90- day pause and a substantially lowered reciprocal tariff of 10 per cent during this period had become effective immediately. However, he said that things would be finally decided during the talks on trade deals. “Nothing is over yet,” he wrote.
But he did not spare China with the latter having announced retaliatory tariff on American exports.
Observers say that this tariff climb-down could be ascribed to the global economic meltdown in the aftermath of the US announcement and the resentment in the affected countries cascading into trade war between them and the US.
