President Trump’s programme of tariffs on Chinese products and retaliatory measures by Beijing have cost the US and China nearly $6billion in 2018, according to a dramatic new study.

In July, the US imposed tariffs on $34billion of Chinese goods. Beijing retaliated with a series of tariffs targeting American products. Earlier this month President Trump agreed to delay a further round of tariffs by 90 days following a meeting with Chinese leader Xi Jinping.

According to Purdue University agricultural economist Wally Tyner, the tariffs have cost both the US and China around $2.9billion over the past year.

The study only covered tariffs on soybeans, corns, wheat and sorghum so the real figure may well be higher.

Over the last year China purchased $12billion worth of soybeans from the US.

However, in July the Chinese government placed a 25 percent tariff on soybeans from America, in response to Trump’s sanctions on Chinese products.

Mr Tyner claims China has also increased imports of soybeans from Brazil, a US rival in the sector.

The US had been due to increase tariffs on another wave of Chinese goods from 10 to 25 percent at the beginning of next year.

However, this was delayed after a 90-day ‘ceasefire’ was agreed by Trump and Mr Jinping during the G20 summit in Argentina earlier this month.

In return for the delay, Beijing vowed to increase its purchase of American industrial goods, energy and agriculture.

On December 7, Trump tweeted: “Statement from China: ‘We are full of confidence that an agreement can be reached within the next 90 days.’ I agree!”

However, the tariff increase is due to go ahead unless a new deal can be agreed by March 2.

If the tariff hike goes ahead it will hit some $200billion worth of Chinese goods, almost certainly provoking retaliation.

On December 29, Trump raised hopes that a deal would be reached before the deadline.

He tweeted: “Just had a long and very good call with President Xi of China. Deal is moving along very well.

“If made, it will be very comprehensive, covering all subjects, areas and points of dispute. Big progress being made!”

Source: Express UK

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