US-China Trade War Escalates as Trump Imposes Additional Tariffs
Trump has introduced additional 34 per cent tariffs on Chinese goods as part of steep levies imposed on most US trade partners.
China Responds with Retaliation
China said on Saturday that “the market has spoken” in rejecting US President Donald Trump’s tariffs, and called on Washington for “equal-footed consultation” after global markets’ dramatic reaction to the trade levies.
Several Chinese commerce associations in industries from healthcare and textiles to electronics also issued statements on Saturday calling for unity in exploring alternative markets and warning that the tariffs would worsen inflation in the US.
Global Markets React
Global stock markets plummeted following China’s retaliation and Trump’s comments on Friday that he would not change course, extending sharp losses that followed Trump’s initial tariff announcement earlier in the week and marking the biggest losses since the pandemic. For the week, the S&P 500 was down 9 per cent.
China’s Response
Chinese foreign ministry spokesperson Guo Jiakun said in a post on Facebook on Saturday morning, “The market has spoken,” and posted a picture capturing Friday’s falls on US markets.
US Trade Partners
Trump also closed a trade loophole that had allowed low-value packages from China to enter the US duty-free, bringing the total duties on China this year to 54 per cent.
Escalating Trade War
This prompted sweeping retaliation from China on Friday, including extra levies of 34 per cent on all US goods and export curbs on some rare earths, escalating the trade war between the world’s two largest economies.
Conclusion
The ongoing trade war between the US and China has caused significant damage to global markets and economies. It is crucial for both parties to engage in constructive dialogue and find a mutually beneficial solution to resolve their differences.
FAQs
Q: What are the tariffs imposed by the US on Chinese goods?
A: The US has imposed additional 34 per cent tariffs on Chinese goods, bringing the total duties on China this year to 54 per cent.
Q: How did global markets react to the tariffs?
A: Global stock markets plummeted following China’s retaliation and Trump’s comments on Friday, extending sharp losses that followed Trump’s initial tariff announcement earlier in the week.
Q: What did China say in response to the tariffs?
A: China’s foreign ministry spokesperson Guo Jiakun said, “The market has spoken,” and called on Washington for “equal-footed consultation” and warned that the tariffs would worsen inflation in the US.
Q: What are the implications of the trade war for the global economy?
A: The ongoing trade war between the US and China has caused significant damage to global markets and economies, and it is crucial for both parties to engage in constructive dialogue and find a mutually beneficial solution to resolve their differences.
Q: What did Chinese commerce associations say in response to the tariffs?
A: Several Chinese commerce associations issued statements calling for unity in exploring alternative markets and warning that the tariffs would worsen inflation in the US.
