China introduces new duties on American goods: how the United States reacted

The trade war between the two largest economies in the world is gaining momentum. China intends to raise tariffs on US imported goods totaling $ 75 billion.

Фото: Depositphotos

Among others, the list included agricultural products, crude oil and small aircraft, writes Air force.

Thus, Beijing responded to the plans of US President Donald Trump to raise 10% tariffs on Chinese goods totaling 300 billion dollars.

“Our great American companies are hereby directed to begin looking for alternatives to the Chinese market, including bringing manufacturing home and making goods in the USA,” Trump tweeted in response, promising to respond to the new tariffs by the end of the day.

Screenshot twitter.com/realdonaldtrump

Screenshot twitter.com/realdonaldtrump

Screenshot twitter.com/realdonaldtrump

More than 5 thousand items of American goods will be subject to new tariffs ranging from 10% to 5%. China is also set to reinstate a 25 percent tariff on American cars that was suspended earlier this year as a gesture of goodwill as Beijing and Washington tried to negotiate a new trade deal.

American automakers have already expressed concern that Chinese tariffs would jeopardize jobs in the United States.

Association of American Automobile Manufacturers spokesman John Bozella recalls: “When China imposed these tariffs in 2017, exports of finished vehicles fell by half. American workers cannot be allowed to suffer again.”

The news immediately affected the market value of shares not only in the United States, but also in Europe.

On the subject: Trump introduces new duties on Chinese goods: how will this affect consumers

"Signal"

On 1 on August, President Trump announced the introduction of an 10 percent tariff on Chinese goods with a combined value of 300 billion dollars, accusing Beijing of not fulfilling earlier promises to purchase US agricultural products.

Initially, the new tariff rates were supposed to take effect on September 1, but two weeks later, Trump postponed this deadline until December 15, partly because of concerns that the new tariffs will affect sales of consumer goods before Christmas.

China also plans to introduce new tariffs in two stages: from September 1 and December 15.

In Washington, they tried not to focus on new tariff measures.

Фото: Depositphotos

Trump's trade adviser, Peter Navarro, told CNN that Beijing's retaliation had been clear and clear for a long time, adding: "This is not new." He also said that negotiations between the two countries were progressing as planned and that the tariff war was not affecting the lives of ordinary Americans.

“Consumers are not feeling the negative impacts [of the trade war], and we are working hard to ensure that those impacts are felt by China, not us,” Navarro said.

According to him, the Federal Reserve is responsible for the slowdown in economic growth in the United States, which recently also got from the president for an insufficiently significant reduction in the discount rate. Navarro also believes that to stimulate growth, the discount rate should be reduced.

On the subject: China warned its tourists and students about the dangers of traveling and studying in the US

The news of the new Chinese tariffs appeared shortly before the speech of Fed Chairman Jerome Powell at a meeting of central bankers in Wyoming.

Bankers looked forward to his speech: US bond markets show signs of an approaching recession. At the same time, the situation on the stock markets is the opposite, and the level of employment in the country has reached its highest level in almost half a century.

Powell warned that trade tensions between Washington and Beijing exacerbate the slowdown in the global economy, adding that the Fed has no ready-made recipes to deal with its consequences.

Trump, as usual, spoke out on Twitter. According to him, the American economy is strong and everything is in order, but in other countries not everything is so good. The markets did not believe Trump and went down immediately after the opening.

Screenshot twitter.com/realdonaldtrump

Trump's reaction to tariff increases

From September 1, the USA will increase duties on goods from China in the amount of $ 300 billion not by 10%, as previously planned, but by 15%, duties on another group of goods worth $ 250 billion from October 1 will be not 25%, but 30%, said President Donald Trump on Twitter. He noted that the decision was made in response to the introduction by China of additional duties on the import of American goods, writes Merchant.

“Unfortunately, the previous authorities allowed China to get so far ahead of fair and balanced trade that it became a great burden on the American taxpayer. As President, I can't allow this to happen anymore! In the spirit of achieving fair trade, we must balance these very unfair trade relationships. China should not have imposed $75 billion in new tariffs (politically motivated!),” wrote Donald Trump.

Screenshot twitter.com/realdonaldtrump

Screenshot twitter.com/realdonaldtrump

Screenshot twitter.com/realdonaldtrump

After Trump criticized Beijing’s decision and announced new duties, the markets reacted negatively to the president’s rhetoric, portending a further escalation of the conflict between the two largest economies in the world. Major US indices showed a negative trend.

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