US Slams 104% Tariff on China
The United States has again launched a major attack on imports from China. This time, it has imposed a 104% tax on some Chinese products. This tax was implemented from noon last night.
After the US again imposed a tax attack, the markets of China and Hong Kong fell after trending higher.
It should be noted that several Asian stock markets, including Shanghai, saw a slight improvement yesterday.
This happened after several days of decline; however, after the US increased tariffs on some Chinese products by more than 100% yesterday, China’s Shanghai Composite Index fell by 1.8% as soon as trading began on Wednesday, while Hong Kong’s Hang Seng fell by 2.8%.
The situation in other Asian markets was similar. The Japanese benchmark Nikkei fell by 4%. South Korea’s Kospi fell 1.5 percent an hour after trading began.
Experts say that global trade is seeing its first downturn since the 1930s. On the other hand, China has once again reiterated its determination to respond to the tariffs imposed by the United States.
It should be remembered that White House Press Secretary Caroline Levitt announced that the United States would implement a 104 percent tax on some Chinese products from 12:01 a.m. on Tuesday.
This move by the United States has been taken because China has also imposed retaliatory taxes on imports from the United States in response to Trump’s tariffs.
Now the United States wants China to withdraw these retaliatory tariffs, but China has not considered this demand even worthy of consideration.
A White House spokesperson claims that about 70 countries have contacted the United States for negotiations on the tariff issue.
He said that keeping in mind the American interest, a separate strategy will be adopted for the country.
He said that President Trump believes that China wants to reach an agreement with the United States on tariffs. Caroline Levitt further said that there will be no delay on the tariff issue,
nor will it be extended. Experts are currently considering the question of what effects the trade tensions between the United States and China will have. Chiang Wang, chief economist for Asia Pacific at Vanguard Investment Firm, says that China’s exports will undoubtedly decline sharply due to the increase in trade tensions between the United States and China. This will hurt local investment, the labor market, consumption, and investor confidence.
According to reports, China has now contacted the European Commission to find alternative markets.
There was a telephone conversation between Chinese Premier Li Keqiang and European Commission President Ursula von der Leyen.
The two leaders strongly criticized the US tariffs and agreed to cooperate in the economic sector. They reiterated their commitment to global economic freedom, trade promotion, and adherence to the principles of the World Trade Organization.
The two leaders also pledged cooperation in strategic, economic, trade, green energy, and digital areas.
The European Commission President said that China and the EU support free trade. While the Chinese Premier said that Chinese policies can withstand uncertainty and external influences.
