After President Donald Trump set new tariffs on imports into the US, countries have responded in kind with their own economic legislation, which has affected many businesses; many a logistics company and even breweries have felt the hit. China, in particular, retaliated with raised import duties on tens of billions of dollars worth of the US’s imports, which include, but are not limited to lobsters, soybeans, electric vehicles and whiskey.
Beijing issued a statement on the 9th of June, that it was only responding in ‘equal scale’ to the Trump’s new tariffs, which affected Chinese goods, as part of a conflict regarding China’s estimated $336 billion trade surplus and technology policy that some companies in the globe worry that could escalate and freeze economic growth across the world.
The new duties were put in place after Trump warned of ‘additional tariffs’ should Beijing set retaliatory duties on American goods. The new duties amounted to 25% on about $50 billion worth of US imports. The new China tariffs announced by the Trump presidency will not include the full $50 billion, at least initially.
According to US Trade Representative Robert Lighthizer says that the US’s new punitive duties applied to 818 Chinese products, with a total value of $34 billion, on the 6th of July, with a second list, totalling to about $16 billion, under consideration under a new review process, which will bring the total affected import value up to $50 billion.
Beijing’s countermeasures resembled Washington’s, affecting 545 American exports, with a total value of $34 billion, affected with punitive duties as of July 6, which include agricultural products and vehicles, which will affect many a logistics company and other businesses, with many fearing a trade war.
The Ministry of Finance detailed that the 545 products included, but are not limited to electric cars, orange juice, salmon and cigars, among others. The Chinese government has said that they don’t desire a trade war, but they have to fight back against the tariffs.
Currently, Chinese regulators are considering increased tariffs on an additional 114 products, with the list potentially including energy products and medical equipment, with the decision still pending.
Naturally, with US and China having the world’s largest trading relationship, many are saying that a trade war would be bad, not just for the US, but for the global economy as well.