The escalating bilateral trade war between the USA and China is reverberating across international markets.
Last week, US President Donald Trump increased the tariffs on approximately USD200 billion of goods imported from China to 25 percent. China has said it will retaliate in kind and will raise tariffs on USD60 billion of US goods effective June 1.
The American Association of Port Authorities (AAPA) said that tariffs harm all Americans as the increased cost of goods imported and exported are felt throughout the nation.
“Whether it is a US small business or a US manufacturer who uses Chinese goods, or a US farmer who wants to export their products to China and are impacted by retaliatory actions, tariffs hurt our economy and every American,” said Susan Monteverde, AAPA’s vice president of government relations.
The association has asked the US administration to rescind the decision to increase the tariffs and recommends that the process to impose 25 percent tariffs on the remaining USD325 billion on Chinese imports be postponed.
The escalation of bilateral trade tensions has negatively affected stock markets. Asian markets fell on Tuesday after Wall Street closed with sharp losses.
China's trade surplus with the USA is the result of unfair practices, such as widespread state support for domestic companies, argues the USA. It also accuses China of stealing intellectual property from US firms.