Simple explanation of Trump tariffs plan as China do dia own back
Wia dis foto come from, Reuters
China don announce one do-me-I-do you - retaliatory tariffs on some American goods, as US tariffs on all Chinese goods come into force.
Di Chinese tariffs - wey suppose begin on Monday - go put 15% import tax on US coal and liquefied natural gas, plus 10% on crude oil, agricultural machinery, pick-up trucks, and some sports cars.
Di 10% tariff on all Chinese imports to US begin by 00:01 ET on Tuesday (05:01 GMT).
China also announce one anti-monopoly investigation into Google - di company dey operate dia, but im search engine don dey blocked since 2010
Meanwhile di proposed US tariffs of 25% on Canadian and Mexican goods don dey postponed after last-minute talks.
President Trump say di Chinese tariffs na response to trade deficits, and di flow of fentanyl into US.
Inside statement wia dem announce di retaliatory tariffs, China Ministry of Finance accus Trump administration of breaking international trade rules.
"US unilateral imposition of tariffs seriously violate di rules of di World Trade Organization. e no only dey unhelpful in solving im own problems, but also e undermine di normal economic and trade cooperation between China and do US."
China announcement signal say Beijing ready to adopt a do-me-I-do-you response to US tariffs, move wey surprise some observers.
However, unlike di tariffs wey US impose, wey target all Chinese goods, China import taxes go target only certain types of products.
Break down of measures China don impose on US imports
- 15% tariff on coal and liquefied natural gas
- 10% tax on crude oil, agricultural machinery, pickup trucks and large-engine car
- Dem announce anti-monopoly investigation into Google
- Put export controls on 25 types of rare metal products
- Dem add PVH Corp, di holding company for Calvin Klein and oda brands, and US biotechnology company Illumina to dia "unreliable entities" list
Why Trump wan impose tariffs on China?
Donald Trump na fan of tariffs. For im own words: "di most beautiful word in dictionary".
E see dem as way to bring jobs back to US, raise tax revenue and fix problems with America borders.
Trump also believe say trading partners, including Western allies, don take advantage of US and e see tariffs as a way to do dem back. E bin don accuse China of unfair trade practices.
But dis time, di US President say e dey use tariffs not just for economic reasons. E say e wan end di "wahala of fentanyl", wey be powerful opioid wey dey kill tens of thousands of Americans each year. Im administration say chemicals wey dem dey use to make di drug come from China, while Mexican gangs dey supply am illegally and get fentanyl labs for Canada.
Wetin be tariffs?
Tariffs na taxes on imported goods.
Dem dey proportional to di value of di goods and dem dey demand am from firms wey dey import dem, rather dan di exporters.
So, if one firm dey import cars wey di price be $50,000 each and e dey subject to a 25% tariff, e go pay a $12,500 charge on each car.
Di question of wia di final "economic" burden of tariffs fall, as against di upfront bill, dey more complicated.
If US importing firm pass di cost of di tariff to di person wey dey buy di product for US in di form of higher retail prices, e go be say na di US consumer dey bear di economic burden.
How we reach here?
At dis time yesterday Canada and Mexico bin dey ready themselves for a North American trade war.
As of dis morning, though, only China don dey hit by increased import charges. Now, dem don vow to retaliate after 10% tariffs bin dey placed on Chinese imports into di US earlier today.
Dis na how we reach here:
- On 1 February one White House statement say Donald Trump go implement a 25% additional tariff on imports from Canada and Mexico and a 10% tariff on China
- E say dis na to hold di countries accountable on stopping illegal immigration and stopping drugs flow into US.
- Mexico and Canada bin vow to hit back with tariffs of dia own and China say dem go take "necessary countermeasures".
- On 3 February, Mexican President Claudia Sheinbaum announce say she and Trump don reach agreement to stop di tariffs for 30 days - with Mexico agreeing to send 10,000 National Guard members to di border.
- Later dat day, Canadian Prime Minister Justin Trudeau say e do a last-minute call with Trump. Canada agree to reinforce im border in exchange for a 30-day postponement on tariffs.
But without agreement with Beijing by 00:01 EST (05:00 GMT) dis morning, one US tariff of 10% on Chinese imports don come into effect
Shortly after, Beijing announce say dem go impose retaliatory tariffs on some American products, including 15% on coal and 10% on crude oil.
Which tariffs Trump impose for im first term as president?
For 2018, Trump impose tariffs of up to 50% on imported washing machines and solar panels. Di US government bin say US manufacturers for both sectors dey face unfair competition from abroad.
E also place tariffs of 25% on imported steel and 10% on imported aluminium.
Exemptions bin dey for steel and aluminium from Mexico and Canada, because of di free trade agreement US bin get with dem - di North American Free Trade Agreement, or Nafta, wey bin later dey replaced with di United States-Mexico-Canada Agreement (USMCA).
EU, wey be one of di largest exporters of steel to di US, retaliate with tariffs on more dan $3 billion worth of US exports of goods including jeans, bourbon whiskey and Harley Davidson motorcycles.
Trump also put tariffs on more dan $360bn worth of Chinese goods, ranging from meat to musical instruments. China retaliate by imposing tariffs on more dan $110bn of US products.
Under President Joe Biden, di tariffs on China bin mostly remain and dem impose new ones on products such as electric vehicles.
