Reed Cavendish Wealth Management - China Will Retaliate Over New Trade Tariffs

Reed Cavendish Wealth Management - U.S. will escalate trade tensions by imposing further tariffs if China retaliates to latest round of duties imposed.

China recently stated that it would be left with no other option but to retaliate if the United States went ahead with its decision to impose trade tariffs on even more goods imported from China.

Harvey Grace, director of private clients at Reed Cavendish Wealth Management, says there is a risk that U.S. President Donald Trump could reach a point where duties are imposed on almost all goods imported from China to America.

The Chinese commerce ministry announced its intention to retaliate after Trump announced that he was enforcing another round of tariffs: 10 percent on Chinese goods to the value of approximately $200 billion. Trump has since stated his intention to impose further tariffs on $267 million worth of goods exported from China if the country retaliates with further tariffs of its own on U.S. exports.

Reed Cavendish Wealth Management analysts say the statement from the Chinese Ministry of Commerce did not provide further details on China’s plans for retaliation but that recent moves by the United States have caused greater uncertainty in an already precarious trade situation.

China has maintained that the only real way to reach a resolution with the U.S. is through mutually respectful discussions but, at this time, Trump’s actions have done little to inspire a feeling of goodwill between the two countries.

Reed Cavendish Wealth Management analysts reported that, in August, China released a proposed list of U.S. goods to the value of $60 billion that could become subject to tariffs. The goods ranged from certain types of aircraft to liquefied natural gas.

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Source: Reed Cavendish Wealth Management