The trade conflict between China and the United States is coming to a head. After the US tariffs come into force, Beijing levies now want to impose especially on US foods. The US exchange reacts with loss of price.
Shortly after the entry into force of additional US tariffs on imports from China, the Chinese government has announced tariffs on several agricultural products from the USA. The Ministry of Commerce in Beijing said that additional tariffs of 15 percent would be collected on chicken meat, wheat, corn and cotton from the USA – on imports of soybeans, cattle, pigeon and beef, fishing products, fruit, vegetables and milk products tariffs of ten percent.
The tariffs will come into force next Monday. In addition, 15 US companies are placed under export restrictions. Ten other US companies come to the so-called list of unreliable companies.
The unilateral customs measures of the United States would violate the rules of the world trade organization and undermine the basis for economic and trade policy cooperation with the United States, the Chinese Ministry of Commerce said.
Doubling the US tariffs for products from China
US President Donald Trump had previously stated that the tariffs already announced by the United States would come into force as planned for goods from Mexico, Canada and China. The tariffs on goods from Canada and Mexico are 25 percent. Canada then announced against tariffs.
The import duties on goods from China, arranged in February, were doubled from 10 to 20 percent. The latter had already announced Trump last Friday, China had then threatened countermeasures.
Strong price declines on the US stock market
Trump justifies his customs policy with persistent drug smuggling. He is particularly concerned with the opioid fentanyl, in which the components should come from China. The tariffs on goods from China could increase even further if Trump makes his campaign promise come true: Last year he announced tariffs of up to 60 percent of Chinese goods.
China and the United States are at the beginning of a new trade war as in 2018, when Trump also triggered a conflict with the imposition of tariffs during his first term. Higher US tariffs burden China’s export management because they make Chinese goods more expensive and therefore less competitive on the US market.
Trump’s customs announcement caused the courses to break in on the US and Asian stock markets.
With information from Benjamin Eyssel, ARD studio Beijing
