China's sharp response to Trump's tariff threats: A trade war is imminent!

China's sharp response to Trump's tariff threats: A trade war is imminent!

A new chapter in the trade war between the US and China could soon see drastic measures. China is not backing down and is planning counter-responses to US President Donald Trump's threat to increase additional import tariffs on Chinese goods. According to the report of the Global Times, which is close to the Chinese Communist Party, tariffs on agricultural products as well as “non-tariff measures” are being considered. Trump announced last week that he would impose an additional 10 percent tariff on Chinese products, which would bring the total tariff burden to 20 percent. He justifies this with China's lack of commitment to combating fentanyl smuggling into the USA.

Analysts are warning about the potential fallout, pointing to a possible repeat of tariffs imposed on soybeans, beef and other agricultural products in 2018 when China responded in response to U.S. tariffs. China is considered the largest market for American agricultural products, but imports have now declined. The International trade relations tensions between the two economic powers appear to remain tense in the coming weeks, as there are no prospects of trade talks so far. A trade war between these nations is looming as China prepares tough responses to announced tariffs.