China is preparing for retaliatory measures against new U.S. import tariffs, primarily targeting American agricultural products. President Trump has threatened a 10% tariff increase, citing failures in China’s control over fentanyl exports. U.S. Secretary of Commerce indicates that final tariff rates will be determined by the President, adding uncertainty to market dynamics. Meanwhile, President Xi is expected to announce stimulus measures amid this escalating trade conflict.
China is poised to implement retaliatory actions in response to the new U.S. tariffs scheduled to take effect tomorrow, according to insights from the state-controlled Global Times. It appears that American agricultural products are likely to be a prime target for these measurements. Last week, President Trump threatened an additional 10% tariff on Chinese imports, raising the total tariff to 20%. He also accused China of ineffectively managing the export of fentanyl into the U.S., a claim which China refuted as “blackmail.”
The Global Times cited an anonymous source stating, “China is analyzing and formulating appropriate countermeasures to address the U.S. threat of imposing an extra 10% tariff on Chinese goods under the pretext of fentanyl.” This statement reflects China’s commitment to strategically respond to U.S. trade policies. The escalating tension underscores the ongoing trade friction between the two economic giants.
March 3 marks the activation of the tariffs announced by President Trump, yet their final nature remains uncertain. U.S. Commerce Secretary Howard Lutnick indicated that the President would decide whether the tariffs would be levied at the anticipated 25% level. Meanwhile, Asian markets are experiencing a flat trend as investors await updates surrounding these tariffs, while bitcoin prices surge dramatically.
In tandem with these developments, President Xi Jinping is anticipated to unveil new economic stimulus measures as China enters its National People’s Congress amid growing trade hostilities. Despite a recent economic upswing and positive investor sentiment, recent tariff threats pose a significant challenge to sustaining China’s economic momentum. Analysts remain cautious, with uncertainties surrounding the impacts of these tariffs likely influencing China’s economic agenda in the immediate future.
As the global economic landscape shifts in response to these tariffs, there remains a heightened sense of unease among investors. Markets reacted to President Trump’s tariff announcements with mild fluctuations, yet the continuing geopolitical tensions—particularly regarding Ukraine—further complicate the situation. As the trade war escalates, both nations are navigating a precarious balance between retaliation and negotiation.
In conclusion, the ongoing situation highlights the increasing trade tensions between the U.S. and China, particularly concerning agricultural exports and tariffs. Responding to Trump’s threat of additional tariffs, China is actively formulating countermeasures while the U.S. remains uncertain about the final tariff levels. As both nations grapple with economic implications, investors remain vigilant to the resulting fluctuations in global markets, especially with cryptocurrencies like bitcoin experiencing a notable rise.
Original Source: www.moneycontrol.com
