As Beijing responded with counter-tariffs after President Donald Trump’s 10% tariff on Chinese products, trade tensions between the United States and China have grown. The most recent development has reignited the trade war between the world’s first and second biggest economies. The Chinese Ministry of Finance maintains that the American duties breach World Trade Organization (WTO) rules.
China responded by cautioning that it “could be compelled to apply countermeasures” and reminding that no winner exists in a trade war. China’s Permanent Representative to the UN, Ambassador Fu Cong, said: “Let this arbitrary rise be clearly condemned, for we do believe that it contravenes the World Trade Organization (WTO) norms.”
China is taxing US coal and liquid natural gas exports by 15% as part of their countermeasures; they also are charging a 10% tariff on crude oil, agricultural equipment, and heavy-engine vehicles. These are the tariffs to become effective on February 10. Citing national security issues, Beijing has also imposed export bans on rare metals including tungsten, tellurium, ruthenium, molybdenum, and ruthenium products.
China, too in an unexpected turn of events, is starting an antitrust investigation on Google alleging the conglomerate is engaging in monopolistic behavior. Led by the State Administration for Market Regulation of China, the inquiry is generally regarded as a strategic reaction to the US-imposition of tariffs.
President Trump’s larger campaign to slow the spread of illegal drugs entails the tariffs the United States unveiled on Tuesday. Nevertheless, the fast response of China has only served to increase fears of the possible consequences of the trade conflict. Trump had previously called these tariffs the initial shot in his trade fight against Beijing.
The White House said, &;quot;President Trump is boldly acting to hold Mexico, Canada, and China responsible for their commitments to stopping illegal immigration and stopping poisonous fentanyl and other drugs from entering our country. In reaction, Fu Cong observed, “USA on this matter. should look at this matter more from its originating perspective. For example, rather than passing the blame on others, examine the demand side of fentanyl. i don’t believe that will benefit America itself.
Even with the increasing tension, negotiations are still possible. President Trump is set to have talks with Chinese leader Xi in next several days. Analysts advise that a diplomatic solution between the two heads would help to defuse tension and stop more economic instability. The trade conflict is probably far-reaching and hits both countries’ people and companies. Though China’s tariffs would affect United States businesses, American tariffs on Chinese goods could result in higher prices and lower demand.
