China has sent a warning bell for US on August 24, 2019, where they have strongly said against US decision to impose extra tariffs on total of $550 billion Chinese products. China said that U.S needs to stop immediately with their series of ‘wrong actions’ otherwise there would be consequences. These comments by the Ministry of Commerce in China were heard of following the announcement by U.S President Donald Trump that Washington has decided to levy an extra 5% tariff on Chinese products soon after Beijing had declared their recent increased tariff on $75 billion U.S products. The two leading economies of the world are now engaged in an avenging game of increasing tariffs on each other.
Commerce ministry of China mentioned on August 24, 2019, that such illogical and dominating acts of protecting one’s trade and putting constant pressure has already breached the previous consensus decided upon by the country leaders in China and US. Besides, this has also destroyed all sense of mutual respect, privileges, and is a deliberate harm upon the trade relations and normal order of international trade. It was also said that China duly asks US to not take undue advantage of the scenario and take the will of Chinese administration lightly. The latest increase in tariff was announced by Trump on Twitter where it mentioned that U.S would increase tariff on $250 billion Chinese products from earlier 25% to the new rate of 30%. It would begin effect from October 1, 2019, which is also the date of foundation of the communist party – People’s Republic of China.
Another increase in tariff has also been mentioned on $300 billion worth of Chinese product from the earlier 10% to the new rate of 15%. This would begin effect from September 1, 2019. These constant war moves in trade between two large economies has stumbled global economy altogether.