US increases tariffs on imports from China and harms the global economy

United States will raise rates from 10 to 25% Friday $ 200,000 million worth of imported products. He announced via his Twitter account, President Donald Trump, who said the trade negotiations between the two countries they move "very slowly".

"For 10 months, China has paid 25% of US tariffs for $ 50 trillion in technology goods and 10% of more than $ 200 trillion in miscellaneous goods," the US president said. his social network accounts. "The 10% will go to 25% Friday," said Trump.

Last year, the two largest economies in the world tariffs on traded goods were over $ 360,000 million and Washington has accused Beijing of seeking global dominance based on unfair practices, such as forced technology transfer and large-scale state intervention in the markets.

A few days ago put an end to the new round of negotiations held in Beijing to try to put an end to the trade war. US officials arrived in China last Tuesday and after a working dinner with representatives of the Asian giant, they held a series of meetings.

According to the White House, the issues covered commercial issues such as intellectual property, forced technology transfers, non-tariff barriers, agriculture, services, procurement, and compliance methodology with the United States. ;agreement.

The eleventh round of negotiations will take place from May 8 in the United States, where a delegation led by Chinese Vice Premier Liu He will visit. On the same day, the extradition visit of Chinese company Huawei's financial director, Meng Wanzhou, to the United States is scheduled in Canada.

Meng, who is on bail, was arrested on December 1, 2018 at the request of the United States when she stopped in Vancouver, Canada en route to Mexico. US authorities believe that Huawei and Meng have committed fraud to violate trade sanctions imposed by Washington on Iran.

Last December, Trump suggested using the Meng case in Canada as a trade negotiation tool with China. The two delegations will meet on May 8 in the United States following a meeting in Washington in late February, during which Trump said they were "very close to the US." trade agreement "with China.

In this context, the Republican leader had decided to suspend the increase of these tariffs because of the resumption of commercial discussions. Trump seeks to reduce the colossal US trade deficit with China by $ 378,730 million in 2018.

On December 1, at the G-20 Summit in Buenos Aires, Chinese President Xi Jinping and his American counterpart agreed on a trade truce to try to resolve the tariff war that began one year ago. year.

A war that affects the global economy

IMF head Christine Lagarde underlined the importance of US governments and China's pact to end their trade war, which has affected the growth prospects of both countries and the world.

"I would say yes," she answered the question of whether she expected the two economies to reach a trade agreement in the near future, said the EFE agency.

Last week, Lagarde said at a meeting in Beijing with Chinese President Xi Jinping that "The world needs China" and "world economic growth can not be maintained""without the contribution of the Asian giant.

The current slowdown in China has resulted in "impacts" in other parts of the world, such as Asia and Europe, according to the IMF report "World Economic Outlook" released early April.

In this document, the IMF cut global growth expectations by two-tenths 3.3% by 2019, the lowest level since the 2009 financial crisis, weighed down by the US trade war. and China.

The foreign investment in the world fell by 27% in 2018 compared to the previous year, the lowest level since 1999, mainly due to tax reform in the United States, which motivated the mbadive repatriation of capital by its companies.