All Out Trade War Appears Imminent With China

(BEIJING, CHINA) China is rolling out an additional $75 billion in retaliatory tariffs against imports from the United States which amounts to an additional ten percent on top of existing rates. China’s commerce ministry is announcing additional tariffs of five to ten percent on a total of five thousand products including soybeans, crude oil, and small aircraft. China is also re-instituting tariffs on cars and auto parts originating from the United States. The latest news comes as the U.S. is preparing to hit $300 billion worth of Chinese goods, including consumer electronics, with additional tariffs beginning September 1st. Though negotiations between the two countries continue, the U.S. and many members of the G7 group of countries say Beijing’s development plans violate its market-opening commitments in the World Trade Organization (WTO) and are based on stealing or pressuring foreign companies to hand over technology. Enforcement of measures and commitments have been the stumbling block for both sides. The Trump administration has effectively negotiated many aspects of the deal, yet the mechanism of enforcement keeps the talks deadlocked. Reuters reports that China is insisting that President Trump lift the tariffs as soon as an agreement takes effect, yet U.S. negotiators say China can’t be trusted with just their word – especially after having agreed multiple times to increase the purchases of U.S. agricultural products this year – which they have not done.