China’s vengeful fees for the farm goods in the US while the trade war escalates
Another front in Donald Trump’s trade wars opened this morning after China’s vengeance tariffs for US imports began.
The tariffs, notified last week, aim at about $ 21 billion of agricultural imports from the US, in response to the additional 10% fee set for China’s US exports from Trump.
Beijing’s movement covers a wide range of goods. Imports of chicken, wheat, corn and cotton grown in the US will face an additional 15%fee, the Chinese ministry said last week. Tariffs in Sorghum, soybeans, pork, beef, seafood, fruits, vegetables and dairy products will grow by 10%.
The mass will make American products more expensive, and thus less competitive in the Chinese market, which is likely to lead to more imports from other countries in the country.
This is bad news for American farmers and increases the risks that the American economy slows down … or even falls into the frightened recession.
The main events
China’s stock markets have fallen today, as the dual fear of commercial warfare and deflation weighed investors.
CSI 300 The index fell by 0.4%while in Hong Kong hang Senge The index slides by 1.8%.
Ipek Ozkardeskayaolder SWISS Bankcalls it an “ugly sale of early week in China”, adding:
Java begins with a sharp negative note on Chinese shares, as the latest inflation’s update showed that consumer prices in China fell more than a year….
In general, Java is expected to bring more tariffs Chinese tariffs for US agriculture and some Canadian products will begin today, while American steel and aluminum tariffs will be live on Wednesday.
The US trade war comes at a time when the Chinese economy is already struggling with poor inflation.
Consumer prices fell in February, attracting IIK inflation level to -0.7% in February, first negative reading since January 2024.
China’s deflationist pressures are “deepening”, says Stephen Innes, Managing partner at Managing spi asset, Adding:
Monday begins with the same old deflationist drum as China’s consumer inflation received a deeper diving than expected, sliding below zero for the first time in more than a year. The data only strengthen what has been clear with the deflationary months-months-off they remain firmly embedded in the second largest economy in the world.
The asset sector remains stuck in the mud, the inner demand is poor, and despite a bounce on technology shares, the wider effect of wealth is simply not filtering on consumers.
China also announced new tariffs against Canada last weekend, creating an early headache for its future prime minister, Mark Carney.
Beijing is bringing tariffs with over $ 2.6 billion of Canadian agricultural and food products, in a retaliation for taxes on electric vehicles made of China and steel and aluminum products, which Otava introduced last October.
The Ministry of Trade said in a statement.
“Canada’s measures seriously violate the rules of the World Trade Organization, constitute a typical act of protectionism and are discriminatory measures that severely damage China’s legitimate rights and interests.”
China will apply a 100% fee for just over $ 1 billion of Canadian Rapa oil, oil cakes and pea imports, and a 25% task in Canadian water products worth $ 1.6 billion.
China’s vengeful fees for the farm goods in the US while the trade war escalates
Another front in Donald Trump’s trade wars opened this morning after China’s vengeance tariffs for US imports began.
The tariffs, notified last week, aim at about $ 21 billion of agricultural imports from the US, in response to the additional 10% fee set for China’s US exports from Trump.
Beijing’s movement covers a wide range of goods. Imports of chicken, wheat, corn and cotton grown in the US will face an additional 15%fee, the Chinese ministry said last week. Tariffs in Sorghum, soybeans, pork, beef, seafood, fruits, vegetables and dairy products will grow by 10%.
The mass will make American products more expensive, and thus less competitive in the Chinese market, which is likely to lead to more imports from other countries in the country.
This is bad news for American farmers and increases the risks that the American economy slows down … or even falls into the frightened recession.
Introduction: Trump does not exclude the recession
Good morning, and welcome to our business coverage, financial markets and the world economy.
“If it is not hurting, it is not working,” it was the cry of the then Chancellor in the UK John Major in 1989, as the British government strengthened politics to fight inflation and put the country in a recession.
But it can also be the phrase of the new US president, who seems at ease for the concerns he can cause a decline in the US.
Donald Trump He has refused to say whether his trade policies mean that the US economy is facing a higher recession or inflation, arguing that a “transition period” is taking place.
Instead, he told Fox News Show on Sunday morning Future:
“I hate to predict such things. There is a transition period because what we are doing is very large. We are bringing wealth back to America. That’s a big thing.
And there are always periods, it takes some time. It takes some time, but I think it should be great for us. “
Comments echo the Trump line on how tariffs will cause ‘little worry’ in his statement of union state last week.
Trump was talking about Fox shortly after the latest US job report showed an unemployment level in February, but also an increase in employment-with pay paid lists 151,000 in February.
These job data calmed down some nerves about a near “Trumpceration”, but economists remain concerned that the tariffs of hitting the leading trade partners and lowering the federal government will undermine growth.
Kyle Rodda, Senior financial market analyst at cAPITAL.com, Says:
US President Trump meant that he is ready to tolerate the poorer growth as the economy “transitions”, something that can further have the sense of investors – with the creation of jobs in the private sector, overcoming the creation of modest public sector work.
Data added to the notion that the American economy is moderating and its performance is converging to the rest of the world. The tariff market, responding to increasingly disappointing data and poor surprises in the event, indicate that the FED should re-start lower interest rates in July, if not potentially June.