China replies with 84% duties on imports of American goods
China will impose a duties of 84% on US goods from Thursday, significantly higher than 34% announced, according to the country’s finance ministry, Reuters reported. This move ignites the global trade war caused by US President Donald Trump.
Trump justifies criminal duties with the desire to end the US trade deficit with many countries. The world’s trade order, established for decades, has already overturned by breeding fears of recession and deleting trillions of dollars from the market value of leading companies.
Trump’s duties came, for China, 104% became
| Global markets suffered a serious blow on Wednesday when a 104% duties on Chinese goods came into force. Mass sales of US bonds have raised fears that foreign investors are withdrawing from assets in the United States. |
This week, the markets remained unstable again, with trillions dollars being deleted from the value of the shares, with raw materials prices and developing markets being seriously affected.
The limited choice for options pushes China to Trade War of Exhaustion with Trump
The shares of major US banks have declined before the start of stock trade, continuing losses after the 84% Chinese duties on American goods announced. Oil prices have fallen to their lowest levels in four years.
The US and China are in an unprecedented and expensive game of « Who will blink first », with both countries not tend to retreat.
Ting lu. Chief Economist for China in Nomura
Trump almost doubled duties on Chinese imports, which were 54%last week, in response to Beijing’s previous response.
Earlier on Wednesday, China identified its trade surplus with the US as « inevitable » and warned that it « had been resolved and had the means » to continue the battle if Trump continued to hit Chinese imports.
China’s currency is under heavy pressure, with the yuan falling to a record low levels due to duties. Reuters sources have announced that the central bank has instructed large state banks to reduce US dollars and will not allow a sharp decline in the yuan.
