China is Ready to Respond US in Case of Trade War

Forex News

China will react as necessary in the event of a trade war with the United States. Chinese Foreign Minister Wang Yi said that countries should strive for peaceful cooperation, rather than compete. He said he hopes to solve trade problems in the US through dialogue and spoke out against the war of war, but all the same, China will have to make a substantiated and necessary answer, if necessary.

It is assumed, that US President Donald Trump will set a 25% tariffs for imported steel and 10% for imported aluminum this week. Such actions by the Trump’s administration aimed at countering cheap imports, especially from China, which, according to the President, undermine the industry and jobs in the United States. Capital Economics estimates China's exports of steel and aluminum to the United States account for less than 0.1% of its GDP, as both are already limited by anti-dumping measures.

Trump's administration has faced growing opposition to tariffs not only from other countries, but also in the US. Officials are concerned about the potential impact of new tariffs on the US economy.However, the final decision has not yet been made. However, the EU is ready to introduce a 25% duty on a number of American goods in return. The total value of imports, falling under the new tariffs, is estimated at 3.5 billion dollars.

The latest data on China's trade showed that February exports increased by 44.5% compared to the previous year, ahead of market expectations, and imports grew by 6.3%. China's trading indicators were steady in 2017 and showed a strong start this year due to strong demand at home and abroad. But tension in relations with the United States spoils the prospects for exports.