US-China Trade War Escalates China raises tariffs on US goods to 125%, amid ongoing trade tensions with the US.
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China’s Tariff Hike Escalates Trade War with US
- China has raised tariffs on US goods to 125%, escalating the trade war between the two economic superpowers. Chinese leader Xi Jinping stated that his nation is “not afraid” of the trade war, emphasizing China’s self-reliance and resilience.
Trade War Developments
– The US had raised tariffs on China to 145%, prompting China’s latest move.
– China indicates no intention to exceed 125% tariffs, calling further escalation “meaningless”.
– Trump is waiting for Xi to initiate a leader-level phone call to negotiate tariffs.
Potential Consequences
– The trade war has tanked international markets and fueled recession fears.
– Unprecedented tariffs threaten to severely impact trade between the two largest economies.
– Relations between the US and China may further deteriorate, affecting other areas of cooperation.
China’s Possible Countermeasures
– Suspending cooperation on fentanyl issues.
– Banning imports of US poultry.
– Restricting market access for services like legal consultancies.
– Investigating American companies’ earnings from intellectual property in China.
Next Steps
Xi Jinping’s upcoming diplomatic tour of Southeast Asia may provide insight into China’s strategy to counter the trade war. The situation remains fluid, with both nations holding firm to their positions.
