Fears over USA-China trade war
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READING:
A trade war may start between the USA and China. Stock markets in Asia fell on Friday because people are worried. U.S. President Donald Trump plans to put trade tariffs on Chinese goods. A tariff is a tax on imports - goods and services from other countries. President Trump wants to put tariffs on $60 billion of Chinese imports. China said it would use tariffs in reply. Tokyo's Nikkei share index fell by more than 4 per cent on Friday.
The tariffs could start a global trade war. A researcher said: "If the tariffs go ahead...China will retaliate....And then we expect the U.S. to retaliate further. This can turn ugly on a global scale very quickly." Mr Trump wants to protect U.S. workers. He is not happy with the trade imbalance with China. The USA buys $385 billion more goods from China than China buys from the USA. Trump wants to cut this imbalance by $100 billion.
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