China hits back with tax on US imports.
China has responded in kind after US President Donald Trump’s administration proposed 25% tariffs on Chinese technology, transport and medical products, with a list of similar taxes on major American imports.
The muscular response from China shows the world’s second largest economy is not willing to be threatened by Donald Trump’s protectionist approach to trade.
According to Reuters , Chinese Ambassador to the US Cui Tiankai has recently held a meeting with Secretary of State John Sullivan and said: “Negotiation would still be our preference, but it takes two to tango. We will see what the U.S. will do.”
Given the friction between the two global economic superpowers, analysts fear any trade war could have punishing effects on the global supply chain.
With China accounting for around 30% of global containerized freight, any turbulence in its trade is felt around the world.
The developing competition between China and the US comes after Donald Trump ran into office on the back of a promise to secure value for the US domestic market.
However, Trump’s protectionist approach has caused deep concerns with regard to the balance of global trade.