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US imposed more tarrifs on steel import due to overproduction in China

US imposed more tarrifs on steel import due to overproduction in China
Written by Shubham Jain

The 100-day deadline for creating a plan of action to reduce the U.S. trade deficit with China expired on Sunday, and the U.S. firms think that much more needs to done in the same process. More details are expected to be announced in coming weeks on the 100-day plan. A U.S. Commerce Department spokesman said that “We hope to report further progress on the 100-day deliverables next week”. The bilaterals talks between America and China, which began in April, resulted in reopening China’s market for the U.S. buff after 14 years, China also pledged to buy U.S. liquefied natural gas.

Trump administration is also looking to broadening the tariffs/quotas on import of aluminum and steel in response to the international markets are already flooding with Chinese production steel which has also drowned down the prices. this step of slapping the import with tariffs risks at igniting the trade war. For America, it is a risky task to address the problem caused by overproduction of steel.

The bilaterals talks between America and China, which began in April, resulted in reopening China’s market for the U.S. buff after 14 years, China also pledged to buy U.S. liquefied natural gas.

Chinese Pesident Xi Jingping, on his visit to U.S. met  President Donald Trump for the first time at his Florida resort where both the leader agreed to the 100-day plan for trade talks. According to the U.S. Census Bureau data, the U.S. goods trade deficit reached $347 billion last year with China and the gap in the first five months of this year broadened about 53%.

 

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Shubham Jain