China Refuses To Back Down As Trump Threatens New 50% Tariff
China has vowed not to cave in to pressure or threats after US President Donald Trump announced plans to impose an additional 50% tariff on Chinese goods. This move has escalated the ongoing trade war between the two nations, sparking fears of a global recession.
The trade tensions between the US and China have been intensifying, with both countries imposing tariffs on each other's goods. Last week, Trump unveiled sweeping tariffs, prompting criticism from within his own Republican Party and raising concerns about an international recession. In response, China introduced its own 34% duties on US goods, effective Thursday.
Trump's Tariff Threat
Trump's threat to impose an additional 50% tariff on Chinese goods has sparked a significant market sell-off, with Asian equities collapsing on Monday. The Dow and S&P 500 ended lower, while Hong Kong's market experienced its worst day in nearly three decades, plummeting 13.2%. Tokyo's market closed down by almost 8%, and Frankfurt fell by as much as 10% in early trading.
"We have stressed more than once that pressuring or threatening China is not a right way to engage with us," said Liu Pengyu, spokesperson for Beijing's embassy in the US. "China will firmly safeguard its legitimate rights and interests."
China has hit back at Trump's tariff threat, stating that "pressuring or threatening China is not a right way to engage." Beijing's US embassy released a statement emphasizing China's commitment to protecting its interests.
The escalating trade war has significant implications for the global economy. JPMorgan Chase CEO Jamie Dimon warned of potential inflation, stating that the tariffs "will slow down growth." US Senator Ted Cruz expressed concerns about the impact on ordinary voters, warning of a jobs crunch and rising prices.
The European Union is discussing its response to the US tariffs, with Germany and France advocating for a tax targeting US tech giants. However, Ireland has expressed concerns about targeting services, citing potential escalation.
The ongoing trade tensions between the US and China have created uncertainty in the global market. As the trade war escalates, it's essential to monitor the situation closely and consider the potential consequences for the global economy.
In conclusion, the trade war between the US and China continues to intensify, with both countries refusing to back down. The impact on the global economy remains uncertain, and it's crucial to stay informed about the latest developments.
The trade war between the US and China has the potential to have far-reaching consequences for the global economy. Some of the potential consequences include:
- Inflation: The tariffs imposed by the US and China could lead to higher prices for consumers, as companies pass on the costs of the tariffs to their customers.
- Recession: The trade war could lead to a recession, as the tariffs and uncertainty surrounding the trade war impact business confidence and investment.
- Job Losses: The trade war could lead to job losses, as companies impacted by the tariffs are forced to reduce their workforce or close their doors.
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