China raised its tariffs on U.S. goods in retaliation to the White House raising its levy on Chinese goods to 125 percent, on top of the 20 percent tax already on the goods.
The world’s two biggest economies continue their tit-for-tat trade war, which has caused the cost of trade to soar and raised concerns over a global recession. Trump administration officials clarified that China faces a minimum tariff rate of 145 percent on all exports to the United States.
The stock market continues to drop significantly because of the latest changes in the trade war. The S&P 500 still moves between gains and losses, but economers expect it to take on bigger losses. Despite what the numbers and market volatility are saying, President Trump claims his administration was “doing really well on our TARIFF POLICY,” the New York Times reported.
Trump has paused import taxes this week for other countries, yet he raised tariffs on China. China denounced the policy as “economic bullying.” China’s Commerce Ministry said it would file another lawsuit with the World Trade Organization against the U.S. tariffs, the Associated Press reported.
The Chinese tariffs will affect goods like soybeans, aircraft,and drugs. Beijing also increased export controls on rare earth minerals, which are crucial to many technologies.
Back in the U.S., White House officials hoped that the import taxes would create more manufacturing jobs by bringing production back to the country, but this could take years to materialize, if it ever does.
