For the past few months, the US and China have been raising tariffs on each other. The US has added $200 billion of worth tariffs on China, while China has added $60 billion of tariffs on the US.
A bit unknown fact here is that China has been reducing tariffs on other countries except the US for the past few months. China’s average tariff rate on the U.S imports began at 8% at the start of 2018 to take a jump of 20.7% this month.
While on the other hand China has reduced tariffs on imports from other countries from 8% at the beginning of 2018 to 6.7% in the last November, which has continued to remain still.
By lowering tariff duties on other countries China has put a considerable amount of pressure on other American firms, by adding more than double percent of worth tariffs on the US, China has given a big disadvantage to the American companies.
At the same time, President Trump has tried to raise the tariff on other countries to negotiate with the countries, China has chosen a different way to deal with the Trade War.
The two leaders are scheduled to meet at the G-20 summit, as informed by President Trump on a tweet, there is supposed to be an extended meeting after the G-20 summit which will allow the two leaders to discuss the ongoing tensions between both countries.
The rising tensions between both countries and with China’s strategies of pressurizing the US firms have created a tense situation for the US President might not have observed.
In addition, lowering tariffs on imports of other countries allows China to add a little less damage to its economy. Which again creates trouble for the US.
After more than 600 companies writing letters to the President regarding their worries about the escalating tension between the US and China, President Trump has taken an initiative to finally have a talk with China regarding the issues.