In a stunning turn of events, US President Donald Trump on Wednesday reversed his sweeping tariffs on most nations for at least 90 days.
However, he ramped up pressure on China, on which the pause does not apply, further escalating a high-stakes confrontation between the world’s two largest economies.
Instead, Trump slapped a punishing 125 per cent tax on all Chinese goods, while China announced new tariffs of 84 per cent on all US imports, further escalating a high-stakes confrontation between the two largest economies of the world, and fuelling fresh market volatility. The two countries have traded tit-for-tat tariff hikes repeatedly over the past week.
After making an example out of China, the White House sent a stark warning to trading partners– “DO NOT RETALIATE AND YOU WILL BE REWARDED.”
Meanwhile, China refused to back down against America’s aggression, and its 84 per cent tariffs on US imports came into effect at 12.01 pm on Thursday, according to the Chinese state news agency, Xinhua.
Before levies came into force, Beijing’s Commerce Minister had said the ‘reciprocal tariffs’ by the US are “a serious infringement of the legitimate interests of all countries”.
Per a Xinhua report, an official from the Ministry earlier said that no one would win in a trade war.
“I want to emphasize that there is no winner in a trade war, and that China does not want a trade war. But the Chinese government will by no means sit by when the legitimate rights and interests of its people are being hurt and deprived,” the official said on Wednesday.
