China imposed duties on American goods and collapsed the US stock market

The Ministry of Finance of the People's Republic of China called the decision to impose increased duties on goods worth $ 1 billion from 60 in June as a response to US actions. Earlier, Donald Trump advised China to refrain from "revenge", as "it will only get worse."

Фото: Depositphotos

Chinese authorities announced the introduction of higher duties on a number of categories of goods from the United States. In accordance with the decision of the State Council Commission on Customs Duties, from 1 June 2019, the rates of duties on a number of goods imported from the US totaling $ 60 billion will be increased and will total from 10 to 25%.

In the message of the Ministry of Finance of the People's Republic of China, the decision to raise duties was called a response to a similar move by the US authorities, who increased the duties on goods imported from China with a total value of $ 200 billion.

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The Ministry of Finance of China indicated that the actions of the United States violate the agreement reached to resolve trade disputes through consultations, are detrimental to the interests of both parties and do not meet the expectations of the international community.

“China’s commitment to increase duties is a response to US unilateral action and trade protectionism. The Chinese side hopes that the United States will return to the correct path of bilateral economic and trade consultations and will work together with China to move towards each other and strive to achieve a mutually beneficial agreement based on mutual respect, ”the PRC Ministry of Finance stresses.

Major US stock indexes responded by falling on the decision of the Chinese authorities to increase fees.

Фото: Depositphotos

Following the opening of trading on May 13, the Dow Jones Industrial Average (DJIA), S&P 500 and NASDAQ Composite dropped more than 2%.

At its peak, the value of the DJIA index fell below 25 thousand 400 points, which was the lowest value since mid-March 2019 of the year. Compared to the previous closure, the DJIA lost more than 500 points. At the same time, all 30 taken into account when calculating the index of companies were in the red zone.

The S&P 500 and NASDAQ Composite also saw strong declines, with the NASDAQ falling more than 3%, the worst since December 21, 2018, according to MarketWatch.

Earlier on Monday, May 13, US President Donald Trump threatened China tightening previously adopted measures and advised Beijing to abandon attempts to strike back and quickly make a deal.

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“China should not take revenge - it will only get worse! I openly tell President Xi and all my many friends in China that it will be very bad for China if you do not close the deal, ”Trump wrote on his Twitter page.

The US president expressed confidence that further tightening of sanctions would force companies operating in China to move to Vietnam and other countries to which the US sanctions do not apply.

“Very bad for China, very good for the United States,” Trump added.

Earlier it was reported that 10 in May, Trump ordered the imposition of duties on the import of Chinese goods into the United States by about another $ 300 billion.

In July, 2018, Trump said that, if necessary, he is ready to impose duties on almost all imports from China for a total of about $ 500 billion.

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