Trade War Between U.S. and China
Chinese Commerce Ministry demands President Trump rescind tariffs, threatens countermeasures. China accuses U.S. of unilateralism and protectionism, vows to intensify trade negotiations with EU, Japan, and South Korea. Trump's tariff rate on China increased to 54%, with plans for 60% flat tariff on all Chinese imports. Executive order ends 'de minimis' exemption for small packages from China and Hong Kong. Impact on Chinese businesses like Shein and Temu. GDP could contract by 0.5-1% if tariffs remain.
Key Points
- Chinese Commerce Ministry demands Trump rescind tariffs
- Increased tariff rate on China to 54%
- Plans for flat 60% tariff on all Chinese imports
- Executive order ends 'de minimis' exemption for small packages from China and Hong Kong
- Potential impact on Chinese businesses and GDP
Pros
- Efforts to address trade imbalances
- Protection of domestic industries
Cons
- Risk of escalating tensions
- Potential negative impact on global economy