China's retaliation against President Donald Trump's tariffs came into effect Monday, imposing a 10-15% tax on the range of major American goods, including liquefied natural gas (LNG), coal, agricultural equipment and automotive products.
Coal and LNG were strike By the highest tax of 15%. The Chinese Communist Party government has also blacklisted American apparel companies, restricting the export of five important rare earth mineral products to the United States, putting pressure on the defense, solar energy and electric vehicle sectors.
“Compared to US tariffs on blankets, some automotive supplies with liquefied natural gas, coal, crude oil and agricultural equipment, as well as 10 to 15 percent taxes, are subject to a total of 10 percent to 15 percent. It was considered the creation of space. Negotiations to avoid wide trade disputes, Financial Times It has been reported on monday.
China announced its retaliatory agenda on February 4th, less than an hour after the 10% tariff on Chinese goods took effect. Trump officially announced these tariffs just two days before imposing them.
On Sunday, President Trump announced a 25% tariff on all steel and aluminum imports into the United States. This is a move that will primarily affect Canada and Brazil in the short term, but will ultimately target China, the leading global producer of steel and aluminum.
Direct imports of Chinese steel and aluminum into the United States are relatively small, and are already surrounded by tariffs from previous administrations, including President Joe Biden.
However, as China's economy collapses, its massive steel production is no longer necessary for domestic industries. Therefore, China exports its steel at fire prices, floods the world with cheap goods, and exports its own iron producers like Canada and Mexico. Excess to the US.
“China's overpowered capacity has overwhelmed the global market and seriously injured American producers and workers.” I said New York Times (NYT) Monday.
The next phase of the escalating trade war could begin on April 1st by US Trade Representatives schedule He will submit a report on China's compliance with trade deals that Trump signed with China near the end of his first presidential term. Trump has directed other federal agencies to submit recommendations by April 30th to balance foreign trade.
China signature The first trade agreement with the Trump administration in January 2020 includes a promise to dramatically increase American export purchases, with a yearly adjustment of approximately $100 billion over the next two years. Ta. Trump welcomed the deal as a “marine change in international trade,” and Chinese dictator Xi Jinping seemed equally enthusiastic.
But it's devastating Report From the Peterson Institute for International Economics (PIIE) in July 2022, it was discovered that China was almost completely rebuked on the side of the 2020 trade and effectively purchased additional US exports. China has denounced the failure in part the Uhan coronavirus pandemic and subsequent recession.
USTR is likely to confirm the PIIE survey results in its April report, giving China a low mark to maintain the end of the 2020 trade agreement, which will result in Trump becoming even more stringent tariffs and China It gives sufficient justification to impose trade restrictions.
Some observers criticized Trump for moving China's tariffs quickly without allowing much time for Beijing to get out of the deadlock, while others will impose tariffs on February 4th We are looking at the tentative tariffs between Trump and Trump scheduled for April. Authentic High pressure negotiation period. Trump can demonstrate to the Chinese for the last two months that he has not been subject to pressure from China's retaliatory actions.
“If China only had a 10% tariff, I think many investors would sleep more comfortably if we left it. Of course, the big concern is that this is a potentially large trade restrictions prelude. It's a song,” said Frederick Neumann, chief Asian economist at HSBC. Financial Times on monday. It appears that President Trump is not inclined to put anyone in comfort until his trade agenda is fulfilled.
