The trade tensions between the United States and China intensified over the past week, after negotiations between the two governments to resolve their dispute over Chinese intellectual property and technology transfer policies stalled. Each side has blamed the other for allegedly backtracking on commitments and undermining the progress that had reportedly been made.
The U.S. government responded by increasing tariffs to 25 percent on the same $200 billion of imports of Chinese goods that had previously been subject to a 10 percent tariff increase. The U.S. government also requested comments on imposing a 25 percent tariff on an additional $300 billion worth of imports of Chinese goods. The newly announced or proposed tariffs, combined with earlier rounds of tariff increases imposed last year, would cover virtually all imports of Chinese goods. China responded by increasing tariffs to up to 25 percent on $60 billion a year of imports from the United States.
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