China strikes back with 125 per cent tariffs on US | Australian Markets
China on Friday retaliated in opposition to US President Donald Trump’s reciprocal tariffs by raising its levies on U.S. items to 125 per cent from 84 per cent, based on a assertion from the Customs Tariff Commission of the State Council.
“Even if the US continues to impose higher tariffs, it will no longer make economic sense and will become a joke in the history of world economy,” the assertion stated, based on a CNBC translation.
“With tariff rates at the current level, there is no longer a market for US goods imported into China,” the assertion stated, including that “if the US government continues to increase tariffs on Chinese goods exported to the US, China will ignore.”
The Trump administration confirmed to CNBC on Thursday that the US tariff charge on Chinese imports now successfully totals 145 per cent.
Hopes for a US-China deal to resolve trade tensions have pale fast as Beijing has been hitting back within the final week with tit-for-tat duties on American items and wide-ranging restrictions on US companies.
“It’s unfortunate that the Chinese actually don’t want to come and negotiate, because they are the worst offenders in the international trading system,” US Treasury Secretary Scott Bessent advised Fox Business on Wednesday after China’s raised tariffs to 84 per cent.
“They have the most imbalanced economy in the history of the modern world, and I can tell you that this escalation is a loser for them,” Mr Bessent stated.
Goldman Sachs on Thursday cut its China GDP forecast to 4 per cent given the drag from U.S. trade tensions and slower international growth.
While Chinese exports to the U.S. solely account for about 3 proportion factors of China’s complete GDP, there’s nonetheless a important affect on employment, Goldman Sachs analysts stated. They estimate round 10 million to twenty million employees in China are concerned with US-bound export companies.
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