US President Donald Trump is putting 25 percent tax on Chinese goods. These Chinese goods are $ 50 billion.
President Trump alleges that China stole intellectual property rights
25 percent tax is being levied on more than 800 products in China. This tax will be applicable from July 6.
Among the more than 800 products being taxed, the US annual trade with China is $ 34 billion.
The White House says that there will be consultation on imposing taxes on products of $ 16 billion
President Trump has warned that if China reverses it, then the US will impose more tax on it.
The share of Europe and the US stock market has declined due to the fear of trade war between China and USA.
China says that it will behave with America just as America is doing with it.
China has said that the scale on which America is putting tax on its products, China will impose similar tax on US products accordingly.
China has also said that if the United States imposed a moratorium on sanctions, all business negotiations will be zero between the two.
What is a trade war?
Trade war can be called a war through business in Hindi. Like any other war, one country also attacks another and is ready for reversal.
But in place of arms or weapons, foreign goods are targeted.
In such a situation, when one country increases the tariff on goods coming from other countries, the other country also does so in response to this and it increases the confrontation between the two countries.
It affects countries’ economies, which increases political tension between the two countries.