As per experts, China was not surprised with Donald Trump’s threat that America can impose more taxes on Chinese goods. While China took the matter, stating all are aware of the President’s way of speech, the Monday stock market was extremely affected by his announcement. Trump had announced on Sunday that he might impose taxes on all the Chinese goods imported to America.
William Hurst, one of the professors of Political Science at the Northwestern University informed Trump has made such comments previously as well. Hurst is also an expert in Chinese political policies and legal institutes. He informed by making this announcement, Trump might have strengthened the bargaining power of China. According to Hurst, it is better for China to delay or lengthen the discussion while America is in a hurry to seal the deal. Hurst also commented that he thinks that the Chinese authorities see Trump as weak in this position and one who comes with some erratic tendency. As per Hurst, America is straining the relationship with its allies and partners by making such comments. This way, Trump is helping China.
Donald Trump informed on Twitter that China is re-negotiating the sections of the contract which have been already agreed between the two nations. At the beginning of the month, Steven Mnuchin who is the secretary of the treasury and American representative of trade, Robert Lighthizer had informed that the trade agreement between USA and China is in its final phase.
Donald Trump has clearly mentioned in his tweet that he might increase the tariff rate from 10% to 25%. The tariff might be imposed on the $200 billion worth goods which are exported to USA from China. This will be as a topping on the already existing 25% tariff which exists on $50 billion worth Chinese goods.