In an increase in trade war between the US and China, Beijing announced that it would impose new tariffs on a range of agricultural imports from the United States effective next week. It came a few hours after US President Donald Trump announced an increased tariff against China.
Will see an additional 15% tax on imports such as tariffs, chicken, wheat, corn and cotton mentioned by China’s Finance Ministry. A series of other products including sorbet, soybean, pork, beef, aquatic products, fruits, vegetables and dairy will also be applied 10% tariffs.
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China’s Commerce Ministry said, “China has decided to include 15 American institutions, which threatens interest in China’s national security and export control list, which prohibit them on export of dual -use items.”
America is increasing tariffs on several countries including China in an ongoing trade dispute. On Monday, President Donald Trump signed an order to increase the existing 10% tariff on sugar imports by 20%. The move is part of the broader trade strategy, which describes inappropriate economic practices by Trump China, while aiming to curb the flow of illegal drugs such as Fentanell in the United States.
Markets reacted with concern for growing trade stress. Asian markets, including Nikkei in Japan and Hong Kong’s Hong Seng, saw significant losses after the announcement of the new tariff. Economists warn that business war can increase consumer prices and increase economic growth. The Tax Foundation has estimated that current tariffs may reduce US economic production by 0.1%.
While Trump has argued that tariffs are a tool to address long -run trade imbalances and protect American workers, critics, including former US authorities and economists, caution that these measures can backfire, leading to high cost and potential job loss.
