China triggers a counter-coup in the trade dispute with the United States

The tariff dispute between China and the United States threatens to turn into a trade war. The People 's Republic wants to raise from Friday the tariffs on US goods worth 34 billion dollars, as learned news agency Reuters by an insider. They are due to come into effect at 6 pm Chinese time on July 6. According to observers, this would be a kind of retaliatory strike since US President Donald Trump has, for his part, already announced tariffs on Middle Kingdom products until Friday.

At the same time, the United States increasingly aligns States have criticized the World Trade Organization (WTO) for importing cars and auto parts. More than 40 countries, including the 28 EU states, warned Tuesday participants of a global market disruption and a threat to the WTO system.

Japan said additional tariffs on cars could trigger a spiral of countermeasures. collapse of the rules-based international trading system. Russia said the United States had lost its reputation as a reliable trading partner. The US diplomat pointed out that the case had already been formally submitted to the WTO.

Trump threatens the EU with customs duties

According to tariffs already applied on steel and aluminum, US President Trump imposes import duties and the auto parts threatened by 20%. Trump criticizes an imbalance in the industry. The president repeatedly attacked the WTO and accused them of tearing the United States apart. If that does not change, the United States "would do something," he said Monday, without giving details.

Chancellor Angela Merkel said the clashes between the EU and the US had commercial warfare features. "No effort should be spared to defuse the conflict, but that includes two sides," said Merkel, referring to a forthcoming trip by European Commission President Jean-Claude Juncker to the United States. The smooth functioning of the global economy depends on good cooperation.

Fear of commercial war drives up stock markets

Meanwhile, the fear of a trade war with the United States is increasing more and more on Asian stock markets. In Tokyo, the Nikkei index at 225 stocks fell 0.3% to 21,717 points. The MSCI index of Asian equity markets excluding Japan fell 0.4%. Investors in the German stock market deserted because of the global trading conflict that was brewing.

The Dax lost 0.4% to 12,303 points. The growing nervousness in the markets is fueling fears that an escalating global trade conflict could jeopardize the recovery. French government advisers are already warning against the consequences of a widespread global trade war that could trigger a recession after the global financial crisis.

(Reuters / mlo)