China Retaliates, Announces 15% Tariff On Import Of These Items From US
Breaking News: Trump Tariffs Spark Global Trade Tensions
How Will China Respond to US Tariffs?
China has swiftly retaliated against fresh US tariffs announced by President Donald Trump, and has announced 10 to 15 per cent hikes to import levies covering a range of American agricultural and food products. This move places twenty-five US firms under export and investment restrictions, sparking concerns over the potential impact on global trade.
What Goods Will Be Affected?
Beijing will impose an additional 15 per cent tariff on US imports of chicken, wheat, corn, and cotton, and an extra 10 per cent levy on US soybeans, sorghum, pork, beef, aquatic products, fruits and vegetables, and dairy imports as of March 10, according to the finance ministry’s statement. These products are an essential part of the global food supply chain and will likely face significant price hikes as a result of these tariffs.
What’s the Context Behind This Decision?
The US’s unilateral tariffs measures seriously violate World Trade Organization (WTO) rules and undermine the basis for economic and trade cooperation between China and the US, according to China’s commerce ministry. The statement emphasized that China will "firmly safeguard its legitimate rights and interests" in the face of these tariffs.
What’s the Global Impact of These Tariffs?
These heavy duties come as the United States imposed steep tariffs on not just China, but also Canada and Mexico on Tuesday, kicking off a potential trade war. The 10 per cent duty, which US President Donald Trump has threatened China with last week, entered into force at 0501 GMT on March 4, resulting in a cumulative 20 per cent tariff in response to what the White House considers Chinese inaction over drug flows. This has left many wondering about the likely consequences of these tariffs, including the impact on global trade, economic growth, and the value of various currencies.
Why Are These Tariffs So Significant?
The tariff represents an additional hike to preexisting levies on thousands of Chinese goods, as the US has argued that China supplies chemicals used in fentanyl production. China has denied any wrongdoing. This dispute has led to a deepening diplomatic divide between the two nations, making trade and investment more challenging for companies seeking to operate in this complex global landscape.
What’s the Current State of Trade Relations?
Trump has also imposed new 25 per cent tariffs on imports from Mexico and Canada, which took effect on Tuesday. The US has been critical of both countries’ trade practices, alleging that they have taken advantage of the US in trade agreements. However, these tariffs have sparked concerns over the potential retaliation from these countries, as well as other nations, which could have far-reaching consequences for the global economy.
In conclusion, the ongoing trade tensions between the US and China, as well as the US and other countries, pose a significant risk to the global economy. As China retaliates with tariffs of its own, it’s crucial for nations to engage in constructive dialogue to resolve these disputes and promote global trade.
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