Punitive Rights in Force: Trade Dispute Becomes a Trade War

The first US tariffs on Chinese products came into force. The Chinese reaction is also striking German companies. For world trade, the dispute could have serious consequences.

By Steffen root, ARD studio Shanghai

"We will not bow," said a spokesman for the Ministry of Commerce in Beijing yesterday. China is forced to retaliate. As a result, the country will also levy additional duties on US products, in the same volume as the United States. Means: US imports worth $ 34 billion, or just under 30 billion euros, will be defeated at 25%.

State and party leaders pay particular attention to concrete import products that these are things that can be delivered by other states. Fruits, vegetables, meat products and especially: soy. Here are the suppliers from other Asian countries already ready.

German car companies concerned

Affected by the extra fares but also American American cars, and here it is interesting because even BMW and Mercedes are concerned. German companies have factories in the southern United States and produce SUV models for the Chinese market. China is also beating additional tariffs on these cars. Daimler even had to issue a profit warning.

Most experts expect that the trade dispute will continue to accelerate in the weeks and months to come. "Nothing that China has offered the United States in recent weeks has satisfied the Americans," said Nick Marro of the Hong Kong-based Economist Intelligence Unit. This is also because the demands of the United States are so impractical. "Until the United States becomes more concrete, China will not be able to make any concessions."

In addition to tariffs and pure figures, the US-China trade dispute also has immense consequences for the general economic sentiment between the two states. US companies active in China are already complaining of harbadment that could be exacerbated.