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Another emphasis of about 1.9 trillion dollars has created a stir in the global industry to increase its production from China. America is now taking steps to protect its industries. US President Donald Trump on Wednesday put a 125 percent tariff on all the goods imported from China, calling it an necessary step to protect American manufacturers from the flood of cheap goods from China.
While Trump increased the tariff on China by 104 percent to 125 percent, the other countries of the world gave a big relief by putting a break of 90 days on the tariff. President Trump said that for 90 days, only 10 percent tariff will be imposed against those countries which started negotiations fairly. But China was not given this discount.
China’s tariff shock
For the last nearly four years, China used its domestic industry such as real estate and about $ 2 trillion funds of housing in its industries. As a result, there was an unexpected factories flood. After getting help from the country’s public sector banks, China’s manufacturers are rapidly increasing their scope and are preparing with modernity according to the global market from electric cars to fertilizers.
Former President who is in Biden’s government, US Trade Representative Catherine Tai said, “There is a tsunami for all.” According to the data of the central bank of China, the industries have been given an additional financial assistance of about $ 2 trillion, China is not facing the economic recession. China’s leading electric -maker manufacturer BYD is currently going to build two car factory.
Big impact will be going
In the year 2023, China’s exports rose 13% and a year later in 2024 it was increased by 17 percent. Exporters make 20 percent of the total GDP of China’s GDP from this.
In contrast, the share of exports in the US GDP fell and it has reached around 11 percent. This is less than 13.6 percent of 2012. America’s exports to China fell nearly 3 per cent to only 144 billion dollars. China’s exports in the US have increased to $ 440 billion, that is, the trade deficit with China has increased to $ 295 billion.
Other countries are not sitting calm against China. The European Union has imposed 45.3 percent tariff on electric vehicle. Brazil has increased the customs duty on China’s metal and fiber optic cable. Mexico and Thailand are also considering a similar step.
Other countries are not sitting calm against China. The European Union has imposed 45.3 percent tariff on electric vehicle. Brazil has increased the customs duty on China’s metal and fiber optic cable. Mexico and Thailand are also considering a similar step.
