America gave a blow to the dragon, this action deepened the trade war crisis between the two countries.

To reduce dependence on Chinese products and promote local manufacturing, America has banned or increased taxes on hundreds of items imported from China. Now, the Office of the United States Trade Representative (USTR) has increased additional tariffs on almost half of the 429 products.

It is noteworthy that former US President Donald Trump had started a trade war with China. He had imposed additional duties on imports of Chinese goods worth more than $300 billion, citing Section 301 of the Trade Act of 1974. To provide relief to companies in certain industries, Trump also gave tax breaks for certain products.

Last week, current US President Joe Biden announced quadrupling of taxes on Chinese electric vehicles (EVs) and increased taxes on solar cells, semiconductors and several other goods.

The US President instructed his Trade Representative to increase taxes on $18 billion of imports from China under Section 301 of the Trade Act 1974. After the US government imposed restrictions on Chinese goods and increased taxes, there is a possibility of increasing trade conflict between the two countries.

After America's action, now China can also retaliate and impose ban on goods imported from America and can also increase taxes. This is likely to further sour relations between the two countries.