The U.S. trade war and tariffs on China and sanctions on Russia

Market Trends - 12/09/2018

The Russian President Vladimir Putin seems to take another countermeasure against Trump's economic policies today, a day after Russia and China agreed to stand together to fight protectionism.

Russian President Vladimir Putin told a plenary session at the Eastern Economic Forum in Vladivostok “The world and global economy are coming up against new forms of protectionism today with different kinds of barriers which are increasing,"

And he added. “Basic principles of trade — competition and mutual economic benefit — are depreciated and unfortunately undermined, they're becoming hostages of ideological and fleeting political situations, in that we see a serious challenge for all of the global economy, especially for the dynamically-growing Asia-Pacific and its leadership,"

Putin's statement came after China and Russia united together yesterday after the leaders of the two economic superpowers promised to stand together to fight protectionism.

One can take these comments as a light attack on U.S. President Donald Trump who has imposed a giant package of tariffs on Chinese imports and warned to imposed further sanctions on Russia. This U.S.' trade war that includes tariffs on China and sanctions on Russia, started back in 2014 after the annexation of Crimea but escalated due to allegations of Russian involvement in the U.S. 2016 election. Those facts appeared to have brought China and Russia together.

On Wednesday Putin said that Russia and its eastern economic partners need to work to keep trade free of barriers.

Putin said. “We’re convinced that in order for our region to continue to achieve high growth rates, and to remain a key participant in the global economy and trade, it should retain the spirit of economic freedom.

President Putin and Chinese President Xi Jinping yesterday met at the forum for a discussion that was focused on an inter-regional agreement. The Chinese president also appeared positive in having closer relations with Russia and said:

"Together with our Russian colleagues, we will increase fruitful co-operation in international affairs and intensify co-ordination . . . to oppose the policy of unilateral actions and trade protectionism," President Xi said, Reuters reported.


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