China has retaliated to Friday’s US tariffs with further tariffs placed on $60 billion of American goods.
The US has already slapped even more tariffs on China after trade talks failed to produce results last Friday. China has responded in kind with further tariffs placed on $60 billion of US goods.
The trade war between the world’s two largest economies has now re-escalated in earnest, and the stock markets are already reacting. Stocks took a further slump as China announced that duties ranging from 5-25% will be rolled out in June. The products in question include American batteries, coffee, and spinach, according to China’s Finance Ministry.
Investors have already taken serious notice and are worried about the continuing economic damage that tit-for-tat tariffs will have on the global economy. The NASDAQ took its biggest plunge so far this year, and stocks have fallen in Asia and Europe as well.
This round of tariffs placed by China follows an increase in tariffs on $200 billion placed by the US last Friday, which raised previous tariffs from 10% to 25%. The US accused China of backing out of its commitments, and the talks ended with no new agreements to speak of. The ongoing trade war will likely start to harm both countries’ economies more seriously as time goes on. Chinese tariffs have already started to affect certain American products including medical equipment. Tariffs placed by the US have already harmed certain Chinese products as well, while also harming the economies of other Asian economies that supply Chinese factories.