The trade war is growing. Beijing introduces new restrictions for the USA
China responds to new US tariffs, introducing their own duties and export restrictions. The trade war between the two largest economies of the world is giving up pace again.
Trade voltages between the two largest economies in the world are gaining strength. China imposed new duties on agricultural and energy products imported from the USA, and also introduced export restrictions for selected American arms companies. This is a response to the decision of the administration of Donald Trump, who raised the tariffs to goods from China, Mexico and Canada.
New customs and commercial restrictions
From the north of local time, on Monday to Tuesday, elevated customs tariffs from three countries entered into force. Customs duties on products from China increased by 10 percent, while the goods imported from Mexico and Canada were covered by 25 %. rate. This is one of the largest annual tax increases in US history.
Beijing did not remain debt and announced his own retaliation. The new tariffs include 15 % duties on the import of American agricultural products, such as chicken and cotton, as well as 10 % customs fees for crude oil, coal, sprinkled natural gas (LNG), large engine capacity vehicles and agricultural machinery.
Expert reaction
According to Lynn Song, the chief economist for the Great China at ING Bank, China act prudently and avoid violent decisions. – “These funds are relatively moderate for now. You can see that Beijing remains patient and refrains from violent movements, despite the escalation on the US side, “Bloomberg told.
Financial markets under pressure
The decisions of Trump’s administration and Beijing retaliation influenced global financial markets. On Monday, the American stock indexes recorded significant declines – S&P 500 recorded the largest one -day loss since December.
Experts predict that the escalation of trade conflict can have serious consequences for the American economy. The car industry is particularly exposed, which is based on the free flow of parts and components between the USA, Mexico and Canada.
What next?
The commercial conflict between the USA and China has been going on for several years and there are no signs of its completion. New tariffs and restrictions can affect global supply chains, increasing production costs and interfering with international trade. Analysts believe that the following months may bring further tightening of the relationship between Washington and Beijing.
