China is responding to the US President Trump customs package: From next week, an additional custom of 34 percent should be due to all US goods. In addition, exports of rare earths to the USA are restricted.
China repels the trade conflict triggered by US President Donald Trump. The Ministry of Finance in Beijing announced that an additional custom of 34 percent is now also due to all US goods. This should apply from April 10th.
Trump had announced a wave of new tariffs on Wednesday, which also meet the large US trading partners. According to the Trump plans, 34 percent are planned for China – even more than for the European Union, for which 20 percent should apply. Economically and mathematical, Trump’s reasons for the tariffs and its amount are extremely questionable.
Export control For rare earths
The government in Beijing also announced controls for the export of certain rare earths to the USA – they concern Samarium, Gadolinium, Terbium, Dyprosium, Lutium, Scandium and Yttrium. This should apply now. Rare earths are indispensable for many high-tech products such as cell phones and also in the armaments industry. China dominates the world market in rare earths.
As the Ministry continued, China also submitted a complaint with the World Trade Organization (WTO) against the massive US import duties for Chinese goods.
Eleven US companies were also classified as “unreliable” companies. This allows the Chinese government to take punitive measures against foreign companies and makes it impossible for companies concerned to continue trading in China or with Chinese companies.
Trumps reacted to Beijing’s decision in his online service Truth Social: China played the wrong card. “You are panicked – the only thing you can’t afford!” He wrote in capital letters.
DAX reacts with price losses
The financial markets reacted with further price losses to this renewed escalation in the trade conflict: The German stock index Dax expanded its losses and was recently in the minus with around four percent. As a large export nation, Germany is dependent on open markets.
Other exchanges also gave in. In Paris, the courses dropped by 4.66 percent, in London it was 4.24 percent. In Milan and Madrid, price falls have even been recorded by 7.74 and 6.29 percent since the start of retail.
In addition to China, other countries and the EU Commission have also prepared retaliation measures after Trump had raised the tariffs to the highest level in the highest level for more than a century.
This fueled the concern about a global trade war. The investment bank JP Morgan now sees a 60 percent risk that the global economy could get into a recession by the end of the year.
Trump wants to buy China Tiktok
China delivers as many goods around the world as no other country. According to the United States Census Bureau, the United States imported from China worth more than $ 439 billion. The value of US exports to China was only $ 143.55 billion.
Trump had recently promised China if the government in Beijing gives the green light for the sale of the short video service Tiktok. He would consider such a business, the president said on Thursday to journalists on board the Air Force One. According to his words, a sale of Tikkok has reached within reach, several investors are involved.
