USA ended trade truce with China, imposing new tariffs on remaining Chinese imports

The USA government on 2 August 2019 announced that it would impose 10 per cent tariffs on the remaining USD 300 billion worth of Chinese imports starting 1 September 2019, which could potentially increase to 25 per cent. The decision comes as the US said trade talks with China have been lacking progress.

With the new tariffs, almost every Chinese products importing to the USA are now facing tariffs. Market experts commented that the latest round of tariffs cover mostly consumer products and USA retailers are likely to adjust selling prices higher to reflect the additional costs. 

On the other hand, the market is waiting for reciprocal actions from China with Reuters quoting the Global Times Editor in Chief that “China will no longer give priority to controlling the trade war scale, instead they will focus on the national strategy under the prolonged trade war.”