China announces tariffs to US products in response to Trump’s measures, in a new commercial confrontation between the two largest economies in the world
Image source, Reuters
- Author, Drafting
- Author’s title, BBC News World
China announced a series of tariffs on American products, in retaliation for tariffs to Chinese goods imposed by the president of the United States, Donald Trump.
Chinese tariffs, which will enter into force next Monday, include a 15% tax and liquefied natural gas, in addition to 10% to oil, agricultural machinery, trucks and some luxury cars.
This Tuesday early 10% tariffs began to apply all imports from China to the US.
President Trump alleges that the measure against Chinese products are in response to the commercial deficit that exists with the Asian nation and is a way to force China to stop the Fentanyl flow to the US.
For its part, the Beijing government accused Washington of violating the rules of international trade.
“The unilateral imposition of tariffs by the US is a serious violation of the rules of the World Trade Organization (WTO). Not only does it not help sol China and the USA, “says the statement announced the retaliation rates.
It also qualifies the action of “flagrant” and that “represents a typical example of unilaterality and commercial protectionism.”
The China Ministry of Commerce announced that it will file a complaint with the WTO to intervene for the “safeguard your legitimate rights and interests.”
In an additional extent, the competence surveillance entity in China said to have initiated an investigation of the Google company.
The State Market Regulation Administration claims to suspect that the computer giant violates antitrust laws.
Image source, Reuters
With the ads, Beijing made it clear that he will not shy away from a commercial confrontation against Washington.
It is not the first time that this happens between the two main economic powers of the world, which had already been engaged in a tariff war during Trump’s first mandate in 2018.
At that time, Trump implemented his agenda known as “USA first”, imposing a series of tariffs on foreign products. Hundreds of billions of dollars in Chinese products faced new higher taxes or rates, which motivated retaliation by Beijing.
During the government of Joe Biden, Washington maintained the tariffs and even increased some of them. Biden adopted a more focused strategy in the high -tech sector with more rates and restrictions on products such as semiconductors and electric vehicles.
Despite tensions, these two great economies are deeply intertwined, says João da Silva, an economic analyst of the BBC.
Both countries are important commercial partners. Imports from China to the US reached US $ 401,000 million in the first 11 months of last year, while China imported the US equivalent to US $ 131,000 million.
How much damage would the Chinese tariffs do to the US?
Laura Bicker analysis, BBC correspondent in Beijing
China’s retaliation measures have a limited range compared to the levies imposed by Donald Trump to all Chinese products that enter the US.
This time, Beijing has prepared with a series of actions directed towards different parts of the US economy, from the energy sector to individual companies.
Minutes after Trump’s commercial rates came into effect, China declared that it would apply 15% tariffs to liquefied coal and natural gas, as well as 10% to crude oil, agricultural machinery and vehicles with high -capacity American engines. These rates will take effect from next Monday.
However, the impact of these on the US economy could be limited. The North American country is the largest exporter in the world of liquefied natural gas, but only exports about 2.3%to China.
And the main imports of cars in China come from Europe and Japan.
These calculated measures can be barely an initial sakine save, a way of acquiring some negotiation power prior to any dialogue, but still persists the risk of marking the principle of a trade war of taking and Daca.
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