Image copyright Getty Images The trade war between the US and China - which seemed to be nearing an end - has suddenly escalated with the threat of new tariffs.
US President Donald Trump vowed to more than double tariffs on $200bn (£153bn) of Chinese goods on Friday and to introduce fresh ones shortly.Despite this, the Chinese are starting two days of negotiations with the US.The US presidents threat to raise tariffs comes amid claims Beijing is trying to row back on a trade deal.
The worlds two largest economies have already imposed duties on billions of dollars worth of one anothers goods. A further escalation in the trade dispute would create renewed uncertainty for businesses and consumers, hurting the world economy.Trump threatens to hike China tariffsThe next US-China battleground US-China trade war in 300 wordsHere are five charts that help explain the US-China trade war: 1) How has the US trade deficit grown?The US, which accuses China of unfair trading practices, launched a trade war against China last year.
Not only does the US accuse China of stealing intellectual property, but it wants Beijing to make changes to its economic policies, which it says unfairly favour domestic companies through subsidies. The US also wants China to buy more US goods to rein in its lofty $419bn (£321.
2bn) trade deficit with China. The trade deficit is the difference between how much the US imports from other countries and how much it exports. Reducing the gap is a key part of Mr Trumps trade policies.2) What tariffs have been imposed so far?The US imposed tariffs on $250bn worth of Chinese products last year.
Beijing has retaliated with duties on $110bn worth of American products.Tariffs on $200bn worth of Chinese goods were due to rise to 25% from 10% at the start of this year, but this hike was delayed. Now, Mr Trump is saying this increase will go ahead on Friday because talks with Beijing are progressing too slowly.
On top of that, he has vowed to slap 25% duties on another $325bn of Chinese goods shortly. 3) What products could be affected?The Chinese products hit by US tariffs since the beginning of the trade war have been wide-ranging, from machinery to motorcycles. In the latest round, the US imposed 10% duties on $200bn worth of Chinese products including fish, handbags, clothing and footwear.
. Those products will be the ones targeted with a tariff hike from 10% to 25%, if it goes ahead this week. .....