Commercial Litigation: US punitive tariffs against China are in effect

The United States imposed punitive tariffs on goods imports of $ 34 billion from China, as announced. The fees came into effect at midnight on the US East Coast (6:00 am CEST). This was confirmed by the office of US Trade Representative Robert Lighthizer.

In the dispute between the two largest economies in the world, China has announced retaliation. For its part, Beijing should react immediately to special tariffs on US imports. China can not be provoked, said the local Ministry of Commerce. Measures have been announced on soybeans and pork from the United States.

US President Donald Trump threatened Chinese leaders with trade restrictions on Chinese products of up to $ 200 billion in the case of retaliation. Ready for Climbing

First, tariffs on goods worth $ 34 billion would be used, Trump said Thursday, a few hours before the entry into force. "And then we still have 16 (billion) in two weeks," he continued. This is intended to punish intellectual theft on the part of China. "And then, as we know, we are set for another 200 billion, and after the 200 billion, we are set at 300 billion." The measures only concern China.

Economists fear that China's conflict with the United States will soon become a mbadive trade war. The International Monetary Fund (IMF) currently considers that the trade volumes affected are too small to cause major problems for the world economy alone. However, there are fears of uncertainties in the market and a spiral of possible escalation.

Trump campaigns against the country's trade deficit, which has a deficit of more than $ 800 billion, on several fronts. He also denounced the neighbors of Canada and Mexico as well as allies such as the European Union countries with punitive tariffs on steel and aluminum. From there, too, retaliatory tariffs were put into effect.

Criticism of Domestic Trump

There is also a mbadive criticism of the attitude of the US government in Germany. Parts of Trump's own Republican Party see hidden taxes in the tariffs. Critics believe that part of Trump's entrepreneur-led tax reform can be neutralized.

US industries affected by retaliatory tariffs are in turmoil. This is especially true for farmers. China, Canada and Mexico, for example, are demanding higher tariffs on pork products and the EU has imposed retaliatory duties on whiskey.

In the area of ​​commercial law, Trump's policies are considered problematic. Several countries, including the European Union, have already filed a complaint with the World Trade Organization (WTO). For its part, Trump threatens to leave the WTO or even to divide it.

At present, the United States is blocking new appointments to arbitration tribunals at the WTO. They argue that US interests have not been sufficiently recognized in the occupation of the judiciary.