US-China Trade War: China Increased Tariffs for the US in Response to Trump's Decision
China imposed tariffs on imported US products, ranging from wine to oranges, to balance the losses caused by US taxes on imports of aluminum and steel, introduced earlier. Representatives of the China’s Commerce Ministry stated that the duty on the products of the steel and aluminum industry in the amount of 25% and 10% violate the principle of non-discrimination in international trade. In addition, this seriously violates the rights and interests of China.
Thus, since April 2, 2018, Beijing renounces customs concessions for seven types of goods. A total of 128 items of American goods fell into the list. The Chinese government also said that in general, the policy of Beijing in respect of goods of other countries will not change.
Such actions by Beijing further increased the likelihood of a trade war between the two largest economies of the world. China, which has repeatedly stated that it is not afraid of a trade war with the United States, also called on Washington to resolve trade disagreements through negotiations.
Analysts note that tensions in trade relations are unlikely to ease in the near future, but investors should remember that the resulting measures on trade are usually less radical than originally claimed.