Trump threatens China: tariffs to 50 percent in the trade war!

Trump threatens China: tariffs to 50 percent in the trade war!

USA - President Donald Trump has set China an ultimatum that says that the counter-duties of 34 percent must be withdrawn by 12 p.m. at 12 p.m. Otherwise, he threatens with additional tariffs of 50 percent in order to correct the trade weights between the two countries and shift production capacities to the USA. The pressure on China is increasing, because Trump's announcement that new tariffs should come into force on Wednesday goes hand in hand with the introduction of a second part of the American customs package, which also affects the EU, which is considered a country with a large trade deficit. In this tense situation, the Chinese Ministry of Commerce has warned that China will definitely be "accompanying the United States" should not be withdrawn.

global effects of the trade conflicts

The effects of ongoing trade conflicts are considerable and have worldwide economic implications. Trade wars, such as those between the United States and China, create uncertainties in international markets and lead to increasing production costs, which also affect the competitiveness of companies. Consumers have to expect higher prices for imported goods, which limits their purchasing power. This is done in an environment in which forecast growth rates for China at -0.5%, for Germany at -0.3% and for the USA are -0.2%, which could result in significant economic damage.

experts emphasize the need to promote peaceful solutions and open, fair trade in order to alleviate the serious consequences of an escalating trade war. Strategies such as bilateral conversations and diversification of trading partners are essential. Company is advised to diversify their supply chains and invest in research and development to cushion future risks.

The New York stock market also shows the first reactions to the trade crisis, with a decline in Dow Jones by 0.91 percent and light stabilizing the Nasdaq 100. Fear of a comprehensive trade war stirs up the sensitivity on the stock exchanges and illustrates the fragile economic conditions.

The EU Commission President Ursula von der Leyen has meanwhile offered to lift each other to industrial goods with the United States. But while Israel plans to reduce tariffs and trade barriers, Trump refuses to reduce tariffs to Israeli products and thus leave the future of these trade relationships open.

The customs dispute between the USA and China, which also covers a broader dimension of the global trade war, remains a central test stone for the international economic situation. Political and economic actors are required to find new ways to coping with conflict in order to promote international cooperation and to avoid future economic damage.