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China has announced a 34 percent tariff on all US imports in retaliation for the tasks discovered by President Donald Trump this week, moving the world closer to a full trade war.
Global stock markets prolonged their losses on Friday after the announcement, with the future tracking S&P 500 below 3.7 percent and Stoxx 600 5.2 percent of Europe.
China’s Ministry of Trade on Friday said the tariff, which coincides with the latest increase in Trump’s tasks for Beijing, would be imposed on all goods imported by the US from April 10, the day after America’s “reciprocal” taxes came into force.
Trump’s announcement this week with the 34 percent tariff of Chinese imports in the US will receive Washington’s total tax on Chinese goods in more than 60 percent he threatened during last year’s election campaign.
Beijing, who had previously considered such a level of tariffs as a worst case scenario, denounced new US tasks as “a typical biased action of harassment”.
She added that the round of this week’s tariffs “does not comply with international trade rules and seriously damages China’s legitimate rights and interest.”
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The latest Beijing measures are likely to have the greatest impact on US agricultural exports, including soybeans, wheat and corn. China is also an important importer of pharmaceuticals, raw oil, oil gas and liquefied natural gas from the US
The trade war comes at a sensitive moment for Chinese President Xi Jinping, who has based on exports to run the second largest economy in the world through a decline in the wealth sector and deflation.
Trump’s movement to impose steep tariffs on US trading partners around the world has convulsion markets. On Thursday, about $ 2.5tn in market value were deleted from Wall Street reserves and all profits after the dollar elections were deleted.
As Falls continued on Friday, FTSE 100 knocked down 4 percent and Germany’s DAX lost 5.6 percent.
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Investors include the US treasures, postponing yields more than 0.2 percentage points in the day to just below 3.9 percent, their lowest since the beginning of October.
Beijing is one of the biggest objectives of the “reciprocal” tariffs discovered by Trump, who had already set a special 20 percent task for Chinese goods earlier this year.
Andrew Gilholm, China’s Chief of Analysis in Consulting Control Risks, said Beijing can suffer “great self-sacrificed damage” from fully compliant tariffs in the US, given the excess of China’s trade with the US and the tariffs it already has in place.
China announced export prohibitions in seven types of rare land on Friday, while American technology companies, including Skydio and Brinc Drones manufacturers, were added to its “unreliable entity” list, which prohibits Chinese suppliers from selling components for them.
