China has responded to the United States’ threat of import tariffs by imposing 128 of its own.
Tariffs will be as high as 25 percent on products including pork and wine, with an estimated $3 billion in worth.
Beijing explained the new tariffs as a response to the increased duties President Donald Trump put into place on foreign aluminum and steel. China was required to implement its own tariffs against American products in order to safeguard itself against losses from U.S. duties.
China’s stance had previously been that it was not interested in a trade war. However, when the U.S. implemented now import tariffs, it was not willing to sit idly by while its own economy suffered.
President Trump continues to insist that “trade wars are good.” He believes they will be “easy” for the United States to win.
China is Not Alone
China is far from the only market to experience these tariffs and to be frustrated by the fact that it must change its stance as a result of Trump’s love of trade war. The European Union recently took similar steps to safeguard its economies and was not subtle about their opinion on the matter.
“So now we will also impose import tariffs. This is basically a stupid process, the fact that we have to do this. But we have to do it. We will now impose tariffs on motorcycles, Harley Davidson, on blue jeans, Levis, on Bourbon. We can also do stupid. We also have to be this stupid,” said European Commission chief Jean-Claude Juncker in early March, when Trump threatened the E.U. with a 25% tariff on steel and 10% on aluminum imports.
Further American Tariffs on Chinese Imports
American officials have already stated that they will further extend tariffs on Chinese imports. In fact, they’ve stated that those tariffs will be worth tens of billions. The U.S. authorities state that their additional tariffs are their response to unfair Chinese trading practices causing harm to American companies.
However, this only increases the chances that the Chinese will further their own actions. Many wonder how long this will continue to escalate as each country continues to strike back at the other.