The United States and China can turn to a long confrontation in their commercial war, risk the side damage of economies and markets all over the world.
On Friday, China announced the assembly of reprisal customs duties 34 % tariffs on all American imports Show that Beijing does not take President Donald Trump’s tariff. The second largest economy in the world has also announced a new export on rare land.
On Monday, Trump returned with an additional 50 % threat in China – in addition to a total of 54 %, he announced since he took office – if Beijing has not withdrawn the retaliatory definitions.
On Tuesday, the row intensifies among the world’s largest economists, with Chinese Ministry of Commerce Calling Trump’s last threat is “a mistake at the height of the error.”
“If the United States insists on its own way, China will fight to the end,” a ministry spokesman said in a statement. The ministry pledged counter -measures if more American definitions were placed.
The intense dispute between the world’s largest economists has exacerbated Market vehicle Globally.
“Unlike the previous two rounds, as the response of the customs tariff was more restricted, as some specific groups of US imports targeted, this time, Beijing announced a simple, simple and luminous tariff,” the economists wrote on Monday.
The trade war will be painful for Americans – and for everyone else.
“The pain in the short term everywhere (including the United States!) Is guaranteed if the United States is not abandoning comprehensive definitions as it was exposed to the margin compressed industries and families are postponed through the ability to withstand sharp costs,” said Fishno Varathon, head of macro research in Asia.
Some Americans are already providing essential elements to overcome price inflation, in which companies that import them will be determined on the cost of customs tariffs for consumers. Business Insider said last week that others slow the purchases of luxury elements.
Meanwhile, many are witnessing that their investments have declined due to a historical global shares leakage as the markets appear to be the alarm on potential economic contraction.
Varathon wrote: “It will be difficult to avoid the unnecessary destruction by side damage everywhere, as the total demand declines that are highlighted by a sharp decrease in demand for capitalist goods, where the uncertainty paralyzes investments.”
Analysts do not expect a quick solution, as those from the Eurasia Group mentioned “non -identical negotiation patterns” between Trump and Chinese leader Xi Jinping.
Beijing cards
The anti -China measures – which exceeded expectations – may reflect the country that the latest introductory step for the United States is severe. Analysts in the Eurasia Group, a risk consultant, wrote in a memorandum on Friday, that Beijing is likely to look at Washington’s efforts to target Chinese exports through the third countries as “comprehensive and malicious”, a risky consultant company, on Friday.
There is no guarantee that something wants a deal.
“Strong and identical revenge and the customs tariff verification is a prerequisite for Beijing to come to the negotiating table. President Xi Jinping cannot participate in talks of a position of relative weakness.”
Although the United States has a great influence of its position as the world’s largest economy and consumption market, China has its own cards.
“Bluff Beijing is clearly related. Replacing imports is not simply an option for the United States. Not now,” Varathon wrote.
Trump has explained that he wanted to manufacture jobs in the United States.
This will not be an easy transition, with challenges that include long lead times to build manufacturing facilities and wide supply chains in another place.
Trump has multiplied his new definition on Sunday night, saying it is necessary to correct America’s trade deficit with other countries.
“I don’t want anything to decrease, but sometimes you should take the medicine to fix something,” Trump told reporters.
April 8, 2025 – This story was updated to include Trump and the latest responses of the Chinese Ministry of Commerce.
