China answered Donald Trump’s tariff war with glass duties for the supply of American goods.
Donald Trump has announced a trade war worldwide, including he introduced additional duties of 34% to Chinese imports in the United States. The American president has postponed the entry into the power of a week and is offered to all negotiations in the country, promising condescension to those who will make the concessions. China immediately condemned Trump’s attack and encouraged other countries to protect the freedom of trade in the world. And two days later, on Friday, the Chinese Ministry of Finance announced that he had introduced additional functions of the same amount – 34%.
Trump’s war
“The Chinese have made a wrong move, nagpanic – and this is the only thing they can’t afford!”, Commented Peking to Trump. China is the main matter of anger at Trump’s tariff, as it is a leading exporter of goods in America. In China, the United States has a huge trade shortage, and Trump still took place in a trade war with the main rival and military rival in the President’s first term.
The first war did not bring any particular success, and Trump began the second once he returned to the White House in January 2025. He introduced new duties, and after further on April 2, the total tax on importing Chinese goods in the United States would increase by 54%.
Moreover, on May 2, Trump outlined a new blow to Chinese goods.
From this date, he prevents an exception for online stores, allowing the transmission of parcels to the United States cheaper than $ 800 without tax and custom inspections. Just last year, Americans received nearly 1.5 billion in such departments. The removal of indulgence will be especially corrected by Chinese retailers such as Shein and Temu.
Consequences For everyone
The leader of the Federal Reserve (United States Central Bank) Jerome Powell on Friday said that the duties introduced by Trump were higher than expected, and it was likely that the consequences would be more serious.
“The same thing can be said about the consequences for the economy, including higher inflation and slower growth. The size and duration of these consequences is unclear,” Powell said.
The leader of the American Central Bank did not directly remember the fears of the Federal Reserve that Trump’s tariffs could cause inflation growth, and this hope could be a self -forecast.
“Our duty is to maintain the long -term expectation of inflationary with abnormal and not allowing a straight price increase to be a constant inflation problem,” said Powell, with the need to convince business and society that any jumping to inflation will end quickly.
The first analysis of shock shock consequences show that China’s growth rate is slow from 1%to 2.5%, and exports to the United States will fall by 80%. Although Beijing has a political space to reduce interest rates and a significant increase in budget expenditures, it will be very difficult to pay for such a punch to the economy. Chinese exporters have already experienced pressure from large customers such as Walmart, which requires suppliers to compensate for increasing tariffs, which offers lower sales prices.
A large ecosystem of small Chinese manufacturers will also have to find the removal of US tariff benefits, used by Chinese online and TEMU shops to attract American customers looking for cheap goods. Tariffs will also be hit by high batteries of batteries and other key components for American de -electrical vehicles. The injury spreads throughout China, leading to a reduction in jobs and ongoing deflection, which has caused a collapse to manufacturers for twenty -month months.
While the slowdown of China’s economy over the past few years has reduced demand for imports, which, according to Chinese statistics, in 2024 grew only by 2.3%, it was importing the global growth engine. In 2023, the IMF appreciated that “when China’s growth rates increase by 1%, growing in other countries increases by almost 0.3%.”
Therefore, any slowdown in China’s economy caused by Trump’s tariffs will only increase the pain that countries around the world feel from the same policy.
Source: korrespondent
I am David Wyatt, a professional writer and journalist for Buna Times. I specialize in the world section of news coverage, where I bring to light stories and issues that affect us globally. As a graduate of Journalism, I have always had the passion to spread knowledge through writing.