China increased its tariff on US imports to 125% on Friday in retaliation for the last increase in President Donald Trump’s rate, while placing plans to get rid of his excess goods flooding the rest of the world with cheap exports.
Triumph affair On Thursday, an executive order that increased the rate of punitive rates from China to 125 percent, added to tariffs of 20 percent that it requested in February and March about Beijing’s failure in addressing the fentanyl crisis, for a total effective rate of 145 percent.
The president too tidy A 90 -day pause about tasks for most other countries, while trade negotiations are underway, provided that these countries do not retaliate against their first round of rates increases. China was remarkably absent from the 90 -day pause order.
Porcelain answer On Friday, increasing tariffs on US imports from 84 percent to 125 percent.
“The imposition of the United States of excessively high tariffs on China widrically the international and commercial rules, is directed against basic economic principles and common sense, and is simply an act of harassment and unilateral coercion,” the Chinese Ministry of Finance.
The Ministry of Finance said that this would be the last increase in the retaliation rate of China, even if Trump continues to increase the rates of Chinese imports.
“Even if the United States continues to impose higher rates, it will no longer make economic sense and will become a joke in the history of the world economy,” the ministry said. “If the United States continues to play a game of numbers with rates, China will not respond.”
China has another response in mind, in addition to raising its own tariff rates: throwing a mountain of cheap products in the rest of the world to empty its stores of the products that the United States is not buying.
China for the State Global times Thursday say Chinese export customers are confident that they can resist the commercial war storm by finding other clients.
“If a market is not favorable, we can always turn to ethers. Global times
“As a cross -border company of electronic commerce, we certainly have some concerns and groups. But we are sure that the quality and profitability of Chinese products still have advantages in the international market,” said Yao.
Conan Tools’s general manager Wang Xiaonan said his company is looking for new buyers in Africa to replace lost US businesses.
“The discussions are progressing well. Previously, the company did not have African clients or entered the market, and never had customers from South American countries,” he said.
The notion that alternative thesis markets could compensate for lost American businesses is laughable. American imports from China Exceeded $ 462 billion last year. Imports from all over the African continent of China Add At $ 262 billion in the best case, and even that level is sounded only through large commercial deficits that have become increasingly controversial among African populations.
The rest of the world is already highly strung About China selling the overcapacity of the weak domestic demand and the elimination of local markets with an avalanche of low quality goods sold at fire prices. It is likely that other countries consider raising their own tariff and regulatory barriers if China tries to bury them below $ 400 billion in goods that can no longer be sold in the United States.
A spokesman for the Chinese Ministry of Commerce secured the Global times That the communist government is ready to “support foreign trade companies that face export difficulties” by promoting national consumption with subsidies and subsidies.
This, again, is a fanoso – China’s export economy will not provide the money necessary for the stimulus sustained under tariff pressure and, only in its golden age of the United States market plumbing for billions in export revenues, Beijing was extremely reluctant to commit to a great change of domestic stimuli. When the late stimulus plans were finally Put into effect Last year, market analysts found the disappointing result.
Porcelain announced Another stimulus spending round in March to soften the blow of the first tariff of Trump’s rates, which only added up to 20 percent. It is doubtful that Beijing pockets are deep enough to finance more stimulus expenses, and Chinese consumers have not responded with great enthusiasm to the previous rounds.
He Global times Finished with a much more plausible hope that Trump tariffs increase consumers in the United States enough to cause serious political problems, citing a recent budget laboratory in Yale estimate that the average purity of the United States could.
