Trade War Escalation Between U.S. and China

SOURCE www.cnbc.com
China imposes a 34% tariff on all goods imported from the U.S. in retaliation to U.S. tariffs. The trade tensions escalate as Chinese firms are added to unreliable entities list and rare earth-related items face export controls. The move causes global market turmoil and stock futures to plummet.

Key Points

  • China imposes 34% tariff on all U.S. imports in retaliation to U.S. tariffs
  • Chinese firms added to unreliable entities list, rare earth-related items face export controls
  • Global markets experience declines and stock futures drop significantly

Pros

  • China takes a strong stance to protect its interests in response to U.S. tariffs
  • Increase in protectionist trade policies may lead China to explore other trading partners

Cons

  • Escalation of trade tensions could negatively impact global economic development
  • Global markets experience turmoil and stock futures plummet