China: The target of criticism from the US – BNP Paribas

According to Catherine Stephan, Research Analyst at BNP Paribas, the reduction in the trade deficit represents a major issue for the United States and China is particularly targeted as the US recorded a deficit of USD 375.6 billion with China out of a total of USD 795.7 billion in 2017.

Key Quotes

“The United States and China, which have failed to reach an agreement, would potentially trigger a spiral of protectionism.”

“China has announced its intention to retaliate after the United States have announced the imposition of an additional duty of 25% on approximately USD 50 billion worth of Chinese goods imports.”

“China is expected thus to impose a tariff of 25% on 50 billion of US imports. To which, the United States have warned that they will levy an additional tariff of 10% on USD 200 billion of Chinese goods imports. If China retaliates once more, the United States would impose tariffs on another USD 200 billion.”