In its current trade war with the US, China announced it will impose a 25 per cent tariff on American goods valued at $50 billion. China will levy a new 25 per cent tariff on 106 items from the US. A statement from China’s Ministry of Commerce notes, the US measures violated the rules of the World Trade Organisation and seriously violated China’s legitimate rights and interests and threatened the development interests of our country. This is a just act to defend [China’s] legitimate rights and interests and safeguard the multilateral trading system. It is a legitimate measure that conforms to the basic principles of international law.


China’s new tariff list targets soybeans, automobiles and chemicals, however, uncombed cotton and cotton linters will see a 25 per cent tariff. Earlier the US released its list of 1,300 goods from China that will face new tariffs as high as 25 per cent. The unfortunate news for the textile sector is that a much of the machinery used in textile manufacturing such as spinning machines, sewing machines and the machines that knit and weave are incorporated in the list.

This move will handicap the US textile manufacturing industry as they will now have to pay more to import such machinery. It is difficult to fathom how Trump’s ‘America First’ goal of bringing jobs back to the US will be achieved by these measures, as US-based companies would face higher costs of doing business and would consequently downsize workforce to make up cost escalation, or eliminate local manufacturing.