U.S President Trump’s trade war with China entered new territory on Sunday as his next round of tariffs took effect, changing the rules of trade in ways that have no recent historic precedent and driving the world’s two largest economies further apart.
The US has imposed fresh tariffs on $112bn (£92bn) of Chinese imported goods. The new tariffs are sharp escalation in the bruising trade war between the world’s two largest economies.
The move is the first phase of US President Donald Trump’s latest plan to place 15% duties on $300bn of Chinese imports by the end of the year.
In response, Beijing introduced tariffs on US crude oil, the first time fuel has been targeted. China has also raised barriers to American companies and their products, while easing them for other nations.
If fully imposed, Mr Trump’s programme would mean that nearly all Chinese imports – worth about $550bn – would be subject to punitive tariffs.
American companies that once believed the trade war would blow over are now scrambling to limit their exposure to China, in some cases shifting production to other countries, like Vietnam, to avoid tariffs that will soon reach as much as 30 percent.