Economic tensions between the United States and China continue to escalate. Following President Donald Trump’s imposition of massive tariffs on foreign goods, Beijing is now responding with drastic countermeasures: Starting on Thursday, US products will be subject to import duties of up to 84 percent, according to Bloomberg. This is an increase from the previous rate of 34 percent.
The United States had already raised import duties on a global scale earlier in the week, with China being hit particularly hard, as duties of up to 104 percent will now be imposed. In Washington, the measures are portrayed as necessary steps to strengthen the domestic economy, while Beijing speaks of an unjustified trade blockade.
Economists warn of the consequences of this escalation. While Trump proclaims a “Golden Age” for the US economy, financial experts fear significant market destabilization. Signs of economic turbulence are increasing and even long-time financial allies are increasingly distancing themselves from the president.
As criticism of Trump’s protectionist policies grows in the United States, China’s leadership is meeting with party officials to discuss further steps. Analysts believe that Beijing may consider additional countermeasures to put pressure on the US economy.
Meanwhile, negotiations with the United States over a possible zero-tariff agreement are underway in Vietnam. Other Asian countries may also try to distance themselves from the trade war.