“Jack and I are going to do great things — small business,” Trump said a year ago. Jack Ma was in complete agreement so much so that he even promised to create 1 million jobs for the US over the next five years. But the latest imposition of fresh rounds of tariffs of worth $200 billion on Chinese goods has escalated the existing trade war between the two countries. In retaliation, China not only called off the upcoming trade talks but has also slapped the US with $60 billion on import tariffs.
In a bid to scale up small-scale businesses and open up new avenues for the Asian market in the US, Jack Ma asserted in nurturing the ties between the two countries last year.
‘‘The promise was made on the premise of friendly US-China partnership and rational trade relations,’’ said the Chinese business magnate. ‘‘That premise no longer exists today, so our promise cannot be fulfilled.’’
The tariff Beijing imposed took on products ranging from agricultural production to frozen meat, from consumer goods like furniture to industrial chemicals.
"For months, we have urged China to change these unfair practices and give fair and reciprocal treatment to American companies," President Donald Trump said in a statement.
"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 added.
What the trump administration considers a strict protocol to push China to reform fair trade practices; it can have a disastrous impact on the US economy with stocks falling and consumer goods being directly hit by it.
With the tariff increasing the already expensive goods for US consumers and businesses, economists and public officials expect that it can hit harder at home causing a massive financial strain. Beijing’s latest tariffs include an additional 5% duty on about 1,600 U.S. products and 10% on more than 3,500 items including chemicals, meat, wheat, wine and liquefied natural gas.
The US Chamber of Commerce, a private lobbying group, in a report stated the 14 states could suffer "extremely significant damage” are - Hawaii, South Dakota, Idaho, Mississippi, Alaska, Oregon, Virginia, Iowa, South Carolina, Alabama, Ohio, Illinois, Louisiana, Washington.
This is not the first time that the US has imposed trade sanctions on what it considers to be a reminder for adopting “fair trade practices”. Earlier this year the US imposed 25% tax on steel and 10% tax on aluminium from the EU, Mexico and Canada.