China warns US sanctions will void trade talks-3
Trade sanctions: The
basics What is a trade war? It's when countries attack each other's
trade with taxes and quotas. One
will raise tariffs, a type of tax,
causing the other to respond, in a
tit-for-tat escalation. This can hurt
economies and lead to rising political tensions. What are tariffs?
Taxes on products made abroad. In theory,
taxing items coming into the
country (imports) makes people
less likely to buy them as they
become more expensive. They're
likely to buy cheaper local products instead, boosting your
country's economy. What's a trade deficit? The difference between how much
your country buys from another
country, compared with how
much you sell to that country. The
US has a massive trade deficit
with China. Last year, it stood at about $375bn.-BBC NEWS
basics What is a trade war? It's when countries attack each other's
trade with taxes and quotas. One
will raise tariffs, a type of tax,
causing the other to respond, in a
tit-for-tat escalation. This can hurt
economies and lead to rising political tensions. What are tariffs?
Taxes on products made abroad. In theory,
taxing items coming into the
country (imports) makes people
less likely to buy them as they
become more expensive. They're
likely to buy cheaper local products instead, boosting your
country's economy. What's a trade deficit? The difference between how much
your country buys from another
country, compared with how
much you sell to that country. The
US has a massive trade deficit
with China. Last year, it stood at about $375bn.-BBC NEWS
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