Trump’s trade wars: US doubles tariffs on Chinese goods, China retaliates
4 March 09:27
US President Donald Trump has signed a decree to increase duties on Chinese goods to 20% in response to China’s insufficient actions to stop the illegal supply of synthetic opioids, including fentanyl, to the United States. This is stated in his decree published on the White House website, "Komersant Ukrainian" reports.
As noted in the document, Trump issued a decree on February 1, 2025, imposing duties on Chinese products, citing an “unusual and extraordinary threat” to US national security caused by the flow of fentanyl from China. However, according to him, Beijing has not yet taken adequate measures to overcome the crisis. Therefore, on March 3, Trump decided to double the duties – from 10% to 20%.
The increase in duties is in accordance with the International Emergency Economic Powers Act and other US regulations. The new executive order also provides for further review of the measures if the situation with the supply of fentanyl does not improve.
Читайте нас у Telegram: головні новини коротко
China’s response
China has already announced its own countermeasures. According to the Global Times, starting March 10, China will impose additional duties on certain US products. This was announced not even by the Chinese side, but by the Commission on Customs Tariffs of the US State Council.
The tariffs will be 10% and 15%. An additional 15 percent duty will be imposed on imports of the following goods:
- chicken
- wheat,
- corn
- cotton.
10 percent duties will be imposed on the following products:
- sorghum
- soybeans,
- pork,
- beef,
- aquatic products,
- fruits,
- vegetables
- dairy products.
It is worth noting that for these products, the relevant tariffs will be added to the existing tariff rates. According to the statement, the current bond policy, as well as the policy on tax reductions and exemptions, will not change, but these tariffs will not change either
According to the statement, the tariffs will not apply to imports that were shipped from the port of origin before March 10, 2025.
Trump’s trade wars
Donald Trump’s administration has been imposing trade restrictions not only on China, but also on Mexico and Canada, the two other largest trading partners of the United States.
These measures have caused concern among U.S. companies that depend on metal imports from Canada and Mexico. They are expected to look for alternative sources of supply, particularly in the Middle East, India, Chile, and Peru, which could lead to higher prices for aluminum and copper in the United States.
In addition, Canadian consumers reacted to the imposition of the duties by boycotting American goods, canceling trips to the United States and refusing to buy American alcohol.
After negotiations with the leaders of these countries, President Trump agreed to postpone the introduction of duties for Mexico and Canada for 30 days. However, this period expires on March 4.
Economists warn that such trade disputes could slow global economic growth and cause inflation. Earlier, stock markets in the Gulf countries reacted with a decline due to fears of a possible trade conflict. The cryptocurrency market also collapsed earlier.
