Trade War: U.S. Delays 10% Tariffs on Some Chinese Imports
China, in response to tariff threats from the Donald Trump administration, plans to impose duties on 85% of goods imported from the United States, adding $ 60 billion worth of American products to the list.
New mutual threats further exacerbate the trade war between the world’s two largest economies. China has already raised duties on US $ 50 billion worth of goods, and in response to US plans to revise tariffs on all Chinese products (US $ 505 billion), it has decided to raise tariffs on goods by another $ 60 billion. Target import charges range from 5% to 25% and belong to 85% of American production ($ 110 billion).
Chairperson China Xi Jinping seeks to enhance the country’s role in the global economy, challenging American dominance, and does not intend to yield to Washington. Beijing is not limited to raising tariffs because of the huge difference in the amount of imported goods by opponents. Therefore, the issuance of licenses to businesses from the United States is additionally delayed and a $ 44 billion deal between Qualcomm and NXP is blocked..
The United States believes it has a better position in the trade war and has begun to act more aggressively since the ceasefire with the European Union. However, American businessmen and officials hope that the heads of state will be able to meet and discuss the terms of the truce, but consider such a scenario unlikely. Due to reduced exports and increased risks The yuan fell 6% against the dollar in two months, so the Central Bank of China has already begun to take measures to increase the exchange rate.
The US Congress plans to increase pressure on the Russian economy. Citigroup analysts predict that the introduction of new sanctions on the national debt could weaken the ruble by 15%.
text: Ivan Malichenko, photo: Visual China Group