BY C STONE | STONE NEWS NETWORK ||| WASHINGTON, D.C.
An all-out trade war has erupted between China and the United States of America. Earlier today, the Trump Administration announced an increase in tariffs against Chinese-imported goods to 145%.
If you're an American or Canadian, and maybe even a Mexican citizen, I'd probably not visit China anytime soon. At least, until this awful trade war is resolved.
This is not a minor disagreement. The U.S. has levied the highest tariffs against China and has steadily increased it's response.
“This is probably the strongest indication we’ve seen pushing towards a hard decoupling,” said Nick Marro, principal economist for Asia at the Economist Intelligence Unit, referring to an outcome where the two economies have virtually no trade or mutual investment.
“It’s really hard to overstate the expected shocks this is going to have, not just to the Chinese economy itself, but also to the entire global trading landscape,” as well as on the US, he said.
From Beijing, China, the leader Xi Jinping has called this 'unliteral bullying'. Both sides appear to be willing to fight back, and the real loser here will be the consumers around the world.
“Xi has been very clear for a very long time that he expects China will enter a period of protracted struggle with the United States and its allies, that China needed to prepare for that, and they have quite extensively,” said Jacob Gunter, lead economy analyst at Berlin-based think tank MERICS.
“Xi Jinping has accepted that the gauntlet is thrown down, and they are ready to put up a fight.”
Meanwhile, 25% tariffs continue to be applied to Canada and Mexico, despite being one of the most loyal allies in decades.
There is also a 10% tariff applied last week, which also has not been removed by the U.S.
Expect very expensive vehicles, delayed spare parts, and insane costs to electronics.
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