Increasing Tension in Global Trade: Retaliation from China to US
Tension is escalating in global trade. China has announced a 34% tariff on US goods.
The strain in the global economy has reached its peak. Retaliation from China against US tariffs has emerged.
The China Ministry of Commerce revealed a comprehensive tariff package targeting the US. Starting from April 10, China declared that an additional 34% tariff would be imposed on US goods. The tariffs announced by US President Donald Trump have been noted as the toughest trade restrictions imposed in over a century.
HIGH TAXES FOR CHINA AND EU FROM THE US: The US implemented additional tariffs on 185 countries. The tariff rates varied between 10% and 50%. The US applied higher taxes to countries with which it had a significant trade deficit. Major trade partners such as the European Union faced an additional 20% tax, China 34%, and Vietnam 46%.
EUROPEAN BANKS HIT HARD: Following China’s retaliatory decision, European banking shares plummeted. Expectations of a strong response from the European Union to the US sparked concerns in the markets. Shares of Deutsche Bank dropped by 11%, UniCredit by 12%, Societe Generale by 11%, Intesa by 10%, Santander by 10%, and BBVA by 11%.
