China reacts with drastic counter -tariffs at the United States trade war

In the smoldering trade conflict between the United States And China replied with a significant tightening of his customs policy. After the administration under US President Donald Trump Other special tariffs of 50 percent has imposed imports from the People’s Republic, China follows up:

From Thursday, Chinese counter -tariffs will apply in the amount of 84 percent – an increase compared to the previously planned 34 percent. All imports from the USA are affected.

USA and China: Highest escalation level in the trade dispute so far

The trade conflict between the two largest economies in the world thus reaches a new escalation level after Trump has imposed new customs fees for imports from 180 states from night to Wednesday.

The highest Special tariffs of the United States came into force on Chinese goods, so that tariffs are now due at a total height of 104 percent. This is particularly affected by China – compared to other United States trading partners.

Trump and the USA are targeting China – does the strategy open?

US President Trump justifies customs policy With the aim of correcting the commercialor weights and strengthening domestic production. In addition, the additional customs income should help finance promised tax cuts to American citizens.

Critics accuse the 78-year-old to rely on short-term domestic effects with protectionist measures-at the expense of global trade relationships and massive inflation.

USA impose punitive tariffs against numerous countries – markets in turmoil

In addition to China, many other countries are also affected by new US special tariffs. The European Union has been in effect since Wednesday Import tariffs of at least 20 percentother states are confronted with even higher serves.

This aggressive customs policy ensures economic uncertainty worldwide and is reflected in nervous financial markets. In many places the stock exchanges were on a downfall in many places, The DAX shrank by about ten percent.

Commercial war between the USA and China: Consumer as a loser – inflation threatens

The economic consequences of the trade war The US population also meets: Since a large part of the household and everyday products comes from China, the new tariffs should usually be passed on directly to the end consumers. The consequence: rising prices and an impending wave of inflation.

In contrast to the USA, China does not impose any comprehensive tariffs on goods from all over the world. This makes it easier for the People’s Republic to find alternative trading partners. With that, Beijing may be sitting on the longer lever – at least in relation to the global supply chains.

Additional measures: export restrictions for rare earths

In addition, China not only uses counter-tariffs for goods from the USA, but has recently also restricted the export of less frequent earths: these raw materials are indispensable for modern technologies-from smartphones to electric motors to military high-tech systems. Also the Ukraine has these mineral resources to offer.

The measure aims directly at the technological dependence of the USA and could be sensitive to critical production processes there. (with dpa)))