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The US has been significantly increasing tariffs on Chinese imports: rose from 20% to 54% April 2, then to 104% the April 8 and finally at 145% April 8. China has been responding. Rose from 10% to 34% April 4, then at 84% On April 9 and now he has just announced a last response, uploading the tariffs to US imports to 125%. And now what?
China counterattacks. On Friday the Chinese Ministry of Economy advertisement The new tariffs with a striking message: at this point they already give equal future ups of tariffs by the US.
“In view of the fact that there is no possibility of acceptance in the market for US goods exported to China with the current tariff level, China will not pay attention if the US part continues to impose tariffs on Chinese merchandise exported to the US in the future.”
“A joke”. According to indicate In The Wall Street Journal, “although USA continued imposing higher tariffsit would not make sense from the economic point of view and would become a joke in the history of the world economy. “Indeed, with those tariff levels to producers no longer compensates for trying to sell their products in countries with these tariff levels.
It makes no sense to upload them more. Zhiwei Zhang, president of the consultant Pinpoint Asset Management, indicated In CNBC that “this is the end of climbing in terms of bilateral tariff fees. Both China and the US have sent clear messages, and makes sense to upload tariffs beyond.”
Talks? It does not seem that there is intention to initiate negotiations between the two countries, something that can cause colossal disruption in world supply chains. Even so, a spokesman for the Chinese Ministry of Commerce indicated In an additional statement that Beijing is open to negotiate with the United States on equal terms.
The primary sector in danger. China exports more than it matters, but there is a sector that can be very punished by these tariffs, and that is the primary sector of American farmers and ranchers. That same segment is the one that has given many votes to Donald Trump in the elections.
Soybean, a worrying example. The soybean industry is According to The New York Times one of the great affectedBecause China is the most important market for soybeans exported by the US. According to the US International Trade Commissionthe segment of “grain, seeds and fruits” represents an exports of $ 13,350 million, 11% of total exports to China. Above is just oil.
Image | Ran Liwen
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