United States: On Friday, China implemented 125% import tariffs for US goods as a countermeasure to Donald Trump’s distinct duty hikes that targeted the world’s second-largest economy. The Chinese government also condemned Trump’s trade policy by labeling it “a joke.”
More about the news
Investors had been anticipating Beijing’s reaction after Donald Trump’s Wednesday initiative to boost Chinese goods tariffs by 145% and delay tariffs on multiple other countries’ products for 90 days.
Following a decline in its global financial crisis peak on Thursday, the Yuan recovered some of its value on Friday.
According to China’s Finance Ministry, “The US side’s imposition of excessively high tariffs on China seriously violates international economic and trade rules, runs counter to basic economic principles and common sense, and is simply an act of unilateral bullying and coercion” Reuters reported.
What do the experts predict?
Experts predict that goods trade between China and the United States will become impossible due to escalating tariffs, which exceed 35%, thus eliminating profit capabilities for both Chinese exporters and American manufacturers in the Chinese market.
“Even if the U.S. continues to impose even higher tariffs, it would no longer have any economic significance and would go down as a joke in the history of world economics,” as the statement by the Finance Ministry noted.
“If the U.S. continues to play a numbers game with tariffs, China will not respond,” it maintained.
The statement allowed Beijing to use alternative methods of retaliation while remaining firm that China would persist in opposing the United States until the end.
On Thursday, Beijing declared a blockade on all Hollywood film imports following the new US tariff policies, as Reuters reported.
China aimed its trade offensive at US service exports through two moves, including a travel warning to its people visiting America and a warning to students planning to enroll in Ohio institutions.