Customs War: Trump and XI in the bitter economic zoff!

Customs War: Trump and XI in the bitter economic zoff!

In the global economic war between the USA and China, the argument about tariffs reaches a new highlight! US President Donald Trump announced at the weekend to introduce a 10 percent customs to all Chinese goods, a step that took effect at 12:01 p.m. on Tuesday, like The New York Times reported. This drastic step is a reaction to China's supposed inactivity in the fight against the import of fentanyl, a dangerous drug, from China. Beijing immediately followed with a number of countermeasures and tariffs on US goods, including fossil fuels and agricultural machines.

rising tariffs and counter -tariffs

The Chinese government has increased the tariffs for liquid gas and coal to 15 percent, while an additional surcharge of 10 percent applies to crude oil and certain industrial products. This escalation shows that the trade conflict has only passed into a new phase, since experts such as the Austrian business delegate in Beijing, Franz Rößler, point out that China's power of negotiation is strengthened by these measures. China's potential step to reduce exports less often could have significant consequences for US technology companies that are dependent on these materials.

The tensions are not only limited to the exchange of goods. Trump's aggressive approach could also have a negative impact on global markets. Despite the advantages of high-quality Chinese products, Trump could rely on the Chinese government to increase its import of US goods to improve bilateral relationships. However, there is already concern in Austria, where companies see significant risks for their margins, according to a survey by the Boston Consulting Group. The trade war between the two superpowers is only at the beginning, and it remains unclear who will give in first while the global economy gets into the downward whirlpool.