The U.S.-China trade dispute further increased its intensity on Wednesday, when Beijing raised its tariffs on U.S. imports to 84%.
The move has exacerbated the heat in the escalating trade war between the two largest economies. China's 50% rate hike is to bring the total tax to 104% after the United States imposes similar additional tax rates on Chinese goods.
According to China's response will begin on Thursday Media Reports In the announcement of the Ministry of Finance. Given the earlier comments that China will be as described, it is not surprising “blackmail” By the United States.
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“If the United States insists on further escalating its economic and trade restrictions, then China has the will and abundant means to take the necessary countermeasures and end it,” the Commerce Department wrote in a document released on Wednesday.
Previously, China's State Council Information Office released a white paper saying that the country “has not intentionally pursued a trade surplus”, but described the result as an inevitable result of the United States' “structural problem”, the difference in labor costs.
It warned that if the United States continues to defeat Chinese goods with tariffs, China has the “determination and means” to continue its trade struggle that shocked dozens of other countries and intends to reconfigure its global trade model.
Trump imposed “Reciprocal” tariff In dozens of economies, he accused the United States of “depriving” the United States by selling goods to the world’s largest consumer economy, while maintaining trade barriers that limit U.S. corporate market access.
According to U.S. census data, China's trade surplus with the U.S. trade surplus has expanded to $295.4 billion, from $279 million in 2023.
“There is no winner in the trade war,” China's Ministry of Commerce said in a statement released in the report. “China does not want one, but the government will never allow the legitimate rights and interests of the Chinese people to be harmed or taken away.”
“The United States uses tariffs as a tool to exert the greatest pressure on selfish growth – a classic unilateralism, protectionism and economic bullying,” it said.
A turbulent market
Tariffs that punish the United States have shaken orders of global transactions that have been ongoing for decades, which has raised concerns about the recession and removed trillions of dollars from the market value of major companies.
Analysts keep warning us Relations with China seem to deteriorate smoothly As Trump focuses on trade imbalances, he strongly believes tariffs can help restore U.S. manufacturing.
However, many investors are worried that his tariff policy is too risky and plagued by uncertainty about whether it is a long-term strategy or simply a negotiation strategy to help the U.S. trade better deals with trading partners.
The S&P 500 has suffered its biggest losses in the past week since the creation of the benchmark in the 1950s. Now, it is close to a bear market, defined as its most recent high of 20%.
Nikkei fell nearly 4% on Wednesday, although Hong Kong's Hangsen index and Shanghai comprehensive comprehensive on blue cores both accounted for the rise in state-backed reports, while many other Asian markets were falling.
U.S. Treasury bonds are also trapped Market turmoil Investors dumped even the safest assets on Wednesday, while traditional wind shelter avoided weaker.
European stocks fell after a grim meeting in most of Asia, and U.S. stock futures showed greater pain.
The country's top currency diplomat said Japan will work with seven developed economies and the International Monetary Fund to help stabilize the market.
“Cooperation must be international to prevent market instability,” Atsushi Mimura told reporters.
Trump has shrugged, giving investors signals about whether the tariffs will remain for the long term, calling them “permanent”, but also boasting that they are putting pressure on other leaders to demand negotiations.
“I tell you, these countries are calling us and kissing my ass,” Trump said in a Republican incident in Washington on Tuesday.
“They are eager to reach a deal,” Trump said in his imitation of foreign leaders.
Europe, China, Canada push back
EU countries are expected to approve the group's first countermeasures against Trump on Wednesday and join China and Canada's push.
The European Commission coordinates EU trade policy and has put forward additional responsibilities, most of which are 25%, which are imported from motorcycles, poultry, fruit, wood and clothing to floss, to floss floss.
They have to enter force in stages.
Four sources told Reuters that Trump's tariffs are expected to hit eurozone economic growth a bigger blow than initially estimated eurozone economic growth, although inflation may also be lower in the near term.
Francois Villeroy de Galhau, a policy maker at the ECB, said the ECB is ready to ensure reasonable financing for the euro zone's economic and financial stability.
China Discussion Plan
Trump's responsibilities for Chinese imports nearly doubled last week, in response to Beijing's anti-election campaign.
As hopes of a trade deal declined, China's top leaders met on Wednesday to develop measures to boost the economy and stabilize capital markets, people familiar with the matter said.
China's currency faces huge downward pressure due to tariffs, with the maritime yuan at record lows, but sources told Reuters that the central bank has asked large state-owned banks to reduce dollar purchases and will not allow Sharp's human decline.
Central banks in New Zealand and India lowered their tax rates on Wednesday, which could herald a broader move by policymakers in an attempt to buffer tariffs on the economy. Central banker Ludwik Kotecki said these responsibilities are another argument for lowering interest rates in Poland.
American consumers face higher prices
Some economists warn that American consumers are likely to bear the brunt of the brunt, with prices facing higher prices from sneakers to wines.
A new Reuters/IPSOS poll found that nearly three-quarters of Americans expect prices of daily items to rise in the next six months.
Danish luxury stereo maker Bang & Olufsen said on Wednesday that the price of selected products will be raised next month to explain tariffs and other factors.
The full impact of Wednesday's tariffs may not be felt for some time, as any goods as of midnight will not be subject to new taxes as long as they arrive in the United States on May 27.
Trump said tariffs that came into effect at 12:01 am ET (0401 GMT) targeted the United States that “deprived” the United States of America. The list includes many of the closest allies in the United States.
Trump said his tariffs are a response to U.S. commodity barriers and needs to address U.S. trade imbalances. He also said he might not have completed it and told Republican lawmakers that he might declare his duties on drug imports.
- Jim Pollard's Extra Input and Editing by Reuters
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