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On Monday, US President Donald Trump raised the stakes in the ongoing trade war with China. He ordered the government to prepare tariffs on additional $200 billion worth of Chinese goods, including to the products already facing import duties.

Robert Lighthizer, a US trade representative, put the blame on the new tariff round on China’s decision to equal $50 billion in US Trade tariffs, in addition to its idiosyncratic $50 billion duties on US imports to China. Robert stated that as a result of the tit-for-tat policy by China to match tariffs with the US, President Trump ordered USTR to start the process of imposing 10% tariffs on an additional $200 billion of Chinese imports. According to Lighthizer, there was no justification for China’s retaliation.

Many companies in the US are worried and opposing the administration’s use of tariff against China, stating that it could end up hurting the economic growth of the country. US farmers fear China will soon stop imports of their products like corn and soybean.

Ed Brzytwa, international trade director for American Chemistry Council and representative of chemical companies in the US stated that it has become a difficult situation for a number of companies. They are all worried where this all could end up; they are unable to figure out the end game.

Trump also suggested a 25% tariff on imported cars. This caused an uproar in Europe, which is home to some top car companies like Volkswagen and Mercedes-Benz. This suggestion has forced European car companies in the US to take steps as it could lead to major job losses in the country.

The White House states that the tariffs are a response to China’s unfair trade practices. USA wants China to stop such practices that allegedly encourage the transfer of intellectual property like product ideas and designs to Chinese companies.