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D Americans talk about "Tit for act". The same thing will be offset by the same thing. Like me, I am. That's exactly what's happening in the US-China trade war: Donald Trump wanted to impose new tariffs on hundreds of $ 34 billion worth of Chinese products to date, Friday, and the People's Republic should pay a fee Similar
In the event that China is actually avenging itself, Trump has already announced other tariffs. A revenge for retaliation so to speak. The size could initially be $ 16 billion, but later increase to $ 200 billion, six times the current amount. It is unlikely that the Chinese accept this, think the economists, but react once again to American products. It seems that countries are jostling each other. As if the world was facing a "misadventure" of two economic superpowers.
There have been many commercial wars, but there are sums of money that were unimaginable in the past. What is happening between America and China could become the most devastating economic slugfest in history. The mother of all trade wars.
Many farmers now face ruin
Both governments are trying to hit each other where it really hurts. The new US tariffs are directed against Chinese technology products, which is nothing less than an attack on the heart of the Chinese economy. Printers, copiers, hard drives, and batteries are on the list, for example. So, the things that sent the country in a big way to America.
Rationale for the White House decision: The Chinese could have developed only a large amount number of products because they were spying and stealing ideas. Many economists share Trump's criticism, but consider his radical tariffs dangerous. They fear a slowdown in economic growth in the United States, China and the world.
Beijing is likely to react to US tariffs and introduce taxes on agricultural products such as pork, apples and soybeans. Especially the thing with soy is dramatic for the United States. Pulses are their main agricultural export product. Farmers made sales of $ 22 billion last year, including $ 14 billion from China.
Many farmers are now threatened with ruin. This is going to be a problem for Trump: Farmers are among his most important supporters – and congressional elections are scheduled for the fall. If peasants now suffer from the trade war that the president provoked, Republicans may lose their support.
"He can always raise more"
This is perhaps the reason why Trump's $ 200 billion tariffs are at risk: because he feels threatened. The man probably fears that the sister not only kills his country, but also himself, but he seems ready to let the conflict worsen more and more. A fight inch by inch. A "tit for tat" economic.
The US President, says Derek Scissors of the conservative think tank of the American Enterprise Institute, has an easy option, "He can still charge more fees . " The Chinese finally released the products that they could also fight back with customs duties. In fact, the People's Republic sells more goods in the United States than the other way around. That's why Trump started his trade war with the country: the US trade deficit.
Last year, the United States exported $ 130 billion worth of goods to the People's Republic. China exported $ 505 billion worth of goods to the United States. The deficit was $ 375 billion. And that means: Trump can go through a lot more customs rounds, however, China would give up soon. The country would not be able to respond to the threat of Trump 200 billion with identical measures. After 130 billion would be the end.
The country seems determined to stay tough
"China is making a big mistake when it reflects US tariffs," says economist Scissors, who often stands on Trump's side. "The country has taken a path that leads to a dead end." Beijing must find other ways to fight back. "One would make life difficult for American companies operating in China."
Last year, US companies sold products and services for $ 280 billion in the People's Republic. As in disputes with Japan and South Korea, the Chinese authorities may harass companies, particularly in the area of fire safety, health and safety at work.
The country seems determined to stay firm. Do not buckle in front of Trump, who declared him the number one economic public enemy. "The United States has provoked this trade war," says the Ministry of Commerce in Beijing. We would not bow to "threats and blackmail". "China will be forced to retaliate."
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