The new US tariffs "catastrophic" for stocks: the Chinese state media



"To avoid such blows, the Trump administration is probably the most under pressure," said the Global Times. "So, in general, at the end of trade negotiations, China and the United States have become more psychologically equal."

Trade tensions intensified last year when the Trump administration applied tariffs on Chinese goods worth $ 250 billion, while Beijing fought back with its own rights over US goods of $ 250 billion. worth $ 110 billion. The US trade deficit with China and complaints about how foreign companies are handled by the Chinese system are at stake. These grievances allege market distorting subsidies, the forced transfer of patented technology and the trampling of intellectual property rights.

At a meeting of the G-20 at the end of last year, Trump agreed with Chinese President Xi Jinping not to raise tariffs if both sides could reach a resolution on these issues in a period of 90 days.

But with a little more than a week before the March 1st deadline, there are few public indications that significant progress has been made.

At the same time, China is struggling with its own economic slowdown and could face greater challenges due to declining demand from its main trading partner, the United States, Ting Lu, chief economist at Nomura, said in a report last week that Chinese export growth is expected to slow down months, especially since the rush to buy goods before any tariff increases is virtually complete.

The S & P 500 has risen 0.6% so far this year, while the Shanghai Composite has gained more than 10%.


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