Tick Tock: Trump Gives China 24 Hours to Retract Tariffs or Face Higher Duties
Trump sets deadline for Beijing, requiring a response by midday.
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The world watches as the US-China trade conflict intensifies. Trump's rhetoric escalates, announcing a deadline for China to withdraw its counter-tariffs and threats of further punitive duties, if they fail to comply.
At a reception for Israeli leader Benjamin Netanyahu, Trump warned that if China doesn't back down, he'll impose additional tariffs of 50 percent on Chinese imports starting Wednesday, following the implementation of the second part of the US's massive tariff package. This new round increases import duties by 10 percent on countries with substantial trade deficits, including the EU.
Trump, it seems, has no intention of softening his stance. Despite the White House’s stern warnings, China remains inflexible, vowing to respond accordingly to US aggression.
With China's current tariffs already at 20 percent, the potential total tariffs for US imports from China could skyrocket to a startling 104 percent. However, according to Xu Tianchen, chief economist at the Economist Intelligence Unit, this move might not provide the White House with much leverage since China could respond by ending US agricultural purchases, matching US tariffs, or expanding export controls.
Negotiating with Netanyahu, Trump dismissed the idea of suspending tariffs, insisting that the US will not back down. The European Union, meanwhile, continues to seek de-escalation. They've proposed an agreement to remove all tariffs on industrial goods in exchange for US concessions.
Since Trump's tariff announcement, the German economy could face significant export losses, with IFO Institute calculations estimating a potential 15 percent drop in German exports to the US. Meanwhile, further market disruptions and consumer price increases could impact economic growth and job stability, particularly in sectors reliant on Chinese imports.
- Trade War
- China
- US
- Trump
- EU
- Tariffs
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If the ongoing trade conflict persists, both the US and China may face mounting economic, supply chain, and diplomatic challenges. A trade war escalation could lead to increased tariffs and higher import costs, potentially driving inflation up in both countries. US farmers and industries reliant on exports to China could suffer significant losses, impacting US economic growth and employment figures.
Supply chain disruptions could result if companies are forced to find alternative suppliers or bear higher costs, potentially leading to increased consumer costs. Slower global economic growth and increased competitiveness challenges for other nations are possible if the trade tensions continue. The persistence of counter-tariffs without resolution could lead to strained US-China relations, affecting cooperation in other areas such as security and environmental concerns.
The conflict could also prompt other nations to retaliate, leading to a potential ripple effect throughout the global trading community. The aftermath could be an intricate web of tariffs, trade agreements, and sanctions that disrupts the global economy and undermines cooperative efforts in the long term.
- In response to Trump's 24-hour ultimatum, China has reaffirmed its commitment to its own set of employment policies within its community, vowing to employ a flexible workforce when facing increased tariffs or further duties.
- During the same reception, Trump also dismissed the possibility of suspending WhatsApp communications with Peking, insisting that the US will maintain its employment policies, even in the face of escalating trade tensions.
- Meanwhile, on Tuesday, the European Union's employment policy has been revised to accommodate potential job losses due to increased tariffs, with a focus on providing support to sectors heavily reliant on Chinese imports.
