Trump may impose a 40 percent tax on China goods..!?

Sowmiya Sriram
Trump may impose a 40 percent tax on china goods..!?
The risk of a re-ignition of the trade war between the US and china has increased. This has been one of the important issues discussed by everyone since donald trump won the US presidential election. The new US government, led by donald trump, may impose a 40% tax on goods imported from china early next year, according to a Reuters poll of economists. This is expected to reduce China's economic growth by up to 1 percent. The new tax will be a huge loss for china, which has been struggling to recover from trade restrictions despite the taxes imposed during Donald Trump's previous administration. In this trade war, china, without even flinching from the US, has started making all necessary preparations to impose taxes on the US for its part and to protect its trade on the other end.
Donald trump, during his election campaign, had announced that he would impose heavy taxes on goods imported from china under the 'America First' policy. trump continued to increase the tax rate every time during the campaign, by 60 percent, 80 percent, and 100 percent. china, which was shaken by Trump's speech, was deeply worried. china has already been unable to recover from the fall in the real estate market and is facing problems such as excessive debt burden and sluggish domestic demand. In this situation, when taxes and restrictions are imposed on trade with the US, China's exports will also deteriorate. In a Reuters poll of more than 50 economists, the Trump-led government said that a maximum tax of 60% could be imposed, with an average tax of 38%. If such a high tax is imposed, it will affect the economies of both the US and China. The global supply chain will be disrupted and the price of goods will rise. The Chinese government may also impose taxes in response to the US government's announcement. In the meantime, the important news is that this tax will create opportunities for other foreign companies in china to come to India.
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