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January 08, 2016

Donald Trump favours high tariffs on Chinese exports

BBC News - ChinaToday, 04:34


Image copyright Getty Images

Presidential candidate Donald Trump supports a hefty export tariffs on Chinese goods coming into the US.

He said he supports a 45% tax on Chinese goods to address the trade imbalance between the US and China.

The Republican frontrunner told the New York Times: "I would do a tax and the tax, let me tell you what the tax should be … the tax should be 45%."

Mr Trump said he would expect China to impose its own tax on US goods in retaliation.

China is the second biggest single trading partner to the US and is expected to overtake Canada for the top spot this year.

Importers of Chinese products into the US are charged a tariff based on the type of good.

Mr Trump has spoken about the Chinese-US economic relationship throughout his campaign.

In November he released a plan to address the relationship between the countries.

The plan included lowering the US corporate tax rate, but not this latest proposal of a 45% tax on Chinese goods.

In October, the Trans-Pacific Partnership (TPP) agreement was reached between 12 nations including the US and several Asian countries, but not China.

The free-trade deal raised questions about whether US importers would move production from China to countries like Vietnam to avoid taxation on goods sent to the US.

http://www.bbc.co.uk/news/business-35258620#sa-ns_mchannel=rss&ns_source=PublicRSS20-sa