Chinese dragon full of determination to start the eagle bald of the US
US Treasury Secretary. Scott Besent The 84% reprisal rate of China on US assets dismissed without surroundings.
Photo: Commons.wikimedia.org by Chainwit., Https://creativecommons.org/licenses/by/4.0/
United States and China flags
“They are the surplus country … their exports to the US. Five times our exports to China. So that they can raise their tariffs. But, what?” Beart said speaking in Fox business.
In response to the commercial restrictions imposed by Donald Trump, China has raised tariffs on US assets by 50%Bringing total duty on US imports to 84%. This movement is seen a reprisal measure in Onloing’s commercial war initiated by Washington. The decision of the Chinese government will enter into force on April 10.
What is happening with tariffs between the United States and China?
- February 1: Trump announced a 20% tariff on China’s assets.
- April 2 (“Liberation Day”): Washington imposed an additional 34% rate on Chinese imports, in addition to existing ones.
- In response, Beijing raised 34% of tariffs on all US assets.
- Trump demanded the elimination of China’s retaliation rate and threatened to increase tariffs by 50%.
- Hey followed that threat. Since its inauguration, tariffs have totaled 104%.
Global markets react with decreases
Markets around the world have responded to the growing commercial conflict between the United States and China with notable recessions:
- Nikkei 225 of Japan closed 3.78% on Wednesday, April 9.
- The Topix index fell 3.4%, while Hang Kong Seng of Hong Kong decreased 0.73% in morning trade.
European markets also opened in red:
- The Milan bag saw its FTSE Mib index fall by more than 3% shortly after the opening.
- Frankfurt’s Dax index, which represents the 40 largest companies in Germany, fell 2.5% at the beginning of trade.
JPMORGAN CHASE analysts warn about a growing risk of a global economic slowdown, which increases their 2025 global recession prognosis from 40% to 60% in light of new rates.
Oil prices collapse, gold waves
Petroleum prices have fallen abruptly, with raw Brenta falling below $ 60 per barrel for the first time in four years. By midday of April 9, the futures of June Brent fell 6.7%, quoting at $ 58.57, a level not seen since February 2021.
This fall in oil prices also dragged the Russian stock market, which fell below 2,600 points – Its lowest level since December 20, 2024.
Meanwhile, Gold benefits from his security status. The spot price increased more than 2%, going up again $ 3,000 per ounce. During the past year, gold prices have increased almost 30%, largely driven by geopolitical tensions.
China add six US companies to the list of unreliable entities
The China Ministry of Commerce announced the incorporation of six US companies into its list of unreliable entities. These companies, including Shield AI and Sierra Nevada, have been criticized due to their ties with Taiwan, whose Chinese sovereignty does not recognize.
In addition, the Ministry announced export controls on double -use (civil and military) goods for 12 American manufacturing and technology companies, including drone manufacturers and various communications companies:
- American photonica
- Novotech Inc.
- Codyne
- Marvin Engineering Company Inc.
- SEMAZAZA
- Teledyne Brown Engineering Inc.
- BRINC DRONES INC.
- Synexxus Inc.
- Firestorm Labs Inc.
- Kratos Unnergned Aerial Systems Inc.
- Tactical dome communications
- Instit Inc.
How the commercial war could affect Russia
The exact impact on Russia is still uncertain. Central Bank Head Elvira Nabiullina Expressed Group, pointing out that rates wars generally hurt oil prices:
“If these commercial wars increase, it generally leads to a decrease in global trade, the world economy and the possible demand for our energy exports,” he said.
Compliance with the economist Mikhail BelyaevCurrent tensions are strictly between the United States and China, while Russia is not directly involved:
However, since a quarter of all global trade involves the United States and China, indirect effects are likely. If tensions intensify, it could reduce global trade and launch slow economic growth, which affects the demand for Russian energy exports.
Possible ascending and disadvantages for Russia
A global deceleration can decrease the demand for raw materials, while the increase in competition can reduce prices. Experts believe that China could boost exports to Russia, as it reduces certain US markets.
What China can do next
As reported, the Chinese authorities are expected to respond to the US tariff walks. In the following ways:
- China will increase tariffs on corral birds and American agricultural products.
- American films will be prohibited from importation to China: the Chinese market is the most profitable for Hollywood.
- The cooperation of China-United States in the combination of narcotics will come to an end.
- American companies in China will face problems related to their intellectual property licenses and rights.
- Additional countermeasures will be introduced in the commercial sector.
Detailed
TO Tariff It is a duty (a tax) imposed by a national government, customs territory or supranational union on imports (or, exceptionally, exports) or goods. In addition to being a source of income, import tariffs can also be a form of foreign trade regulation and policy that loads foreign products to encourage or safeguard the national industry. The ‘protective tariffs’ are among the most used protectionism instruments, together with import fees and export installments and other non -tariff barriers to trade. Tariffs can be set (a constant sum per unit of imported goods or a percentage of the price) or variable (the amount varies according to the price). Import tariffs are designed to increase the price of imported goods to discourage consumption. The intention is for citizens to buy local products in their place, thus stimulating their country’s economy. Therefore, tariffs provide an incentive to develop production and replace imports with national products. Tariffs are Meean to reduce the pressure of foreign competition and reduce the commercial deficit. They have a justified historical bone as an average to protect children’s industries and allow the industrialization of import substitution (industrializing a nation by replacing imported goods with national production). Tariffs can also be used to rectify low artificial prices for certain imported goods, due to the ‘discharge’, export subsidies or currency manipulation. The effect is to increase the price of goods in the country of destination.
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