US President Donald Trump has forced more tariffs on Chinese goods worth £150 billion, as the trade war heightens.
These new tariffs are the [third] and biggest yet as they will impact an estimated 6,000 goods, including rice and handbags. Some items that were expected to be affected, such as smart watches, have been exempted.
The tariffs will take effect on 24th September, starting at 10% but then rising to 25% in three months. The US have also stated that these sanctions will not go away unless they can come to an agreement with China.
In a statement, Mr Trump said: “We have been very clear about the type of changes that need to be made, and we have given China every opportunity to treat us more fairly. But, so far, China has been unwilling to change its practices”. He then adds that if they struck back, they would “pursue phase three”, which includes more imposed sanctions totalling £202 billion.
Despite this threat, the Chinese Commerce Ministry has announced that they plan to retaliate once they decide on the suitable action to take.
The Shanghai Stock Market rose 1.8% at the end of the day, with Tokyo up 1.4% and Hong Kong up 0.6%.
This latest set now means that half of Chinese imports are under US tariffs.
Businesses in the US have expressed concern on how this latest round will affect the prices of their products and could result in job cuts.