The U.S. and Chinese governments have begun the biggest game of tit for tat in World history. In retaliation against Trump’s latest round of U.S. tariffs on Chinese imports, China has announced tariffs on $60 billion worth of U.S. goods; and as we all know, damn near everything we have is “Made In China.”
Beijing will increase tariffs on more than 5,000 products as high as 25%, while duties on other goods will increase to 20%. Those rates will rise from either 10% or 5%. China’s retaliation is in response to Donald Trump’s decision to raise duties on $200 billion in Chinese products from 10% to 25%. ⠀⠀⠀⠀⠀⠀⠀⠀⠀
The products affected include peanuts, sugar, and wheat, according to CNBC, as well as, American cotton, machinery, grains and aircraft parts, according to CNN; and in response to the increase, the U.S. may retaliate back. Trump has already threatened to put 25% tariffs on $325 billion worth of Chinese goods that are untaxed and claims to be content leaving the duties in place, arguing they will damage China more than the U.S.
In a series of tweets, Trump argued that tariffs are “very bad for China” and that “China should not retaliate” as it “will only get worse!” Trump tweeted, “I say openly to President Xi & all of my many friends in China that China will be hurt very badly if you don’t make a deal because companies will be forced to leave China for other countries. Too expensive to buy in China. You had a great deal, almost completed, & you backed out!”
China’s move in the trade war has shaken things up for investors, with major U.S. stock indexes diving more than 2% at the start of the week.
The world’s two largest economies have been struggling to sign a trade deal and end an ongoing conflict that threatens to damage the global economy.