China is to impose tariffs on an extra $60bn of imports from the US in retaliation against $200bn of new trade sanctions on Chinese products declared by Donald Trump.
The newest moves denote a new stage in a full-scale trade war among the world’s two major economies. More escalation is considered probable since Trump is facing low popularity ahead of the US midterm elections in coming 60 days, while China doesn’t like to give up too. However, it’s hard for China to retaliate as its imports don’t fit a good number compared to US. The US clearly knew what will happen at last, else the escalation of trade war could be useless.
Trump also has the idea to add more tariffs up to 25% on the same number of Chinese products showing his firm stance to let domestic producers to improve their businesses and therefore to increase their interests. This also seems an appropriate upcoming growth in forex markets.
The fallings in Chinese stock markets recently also show that the tariffs are working as one of the clear signals in many economies is stock markets growth.
