November 30, 2022

$50 billion Tariffs in Chinese Goods imposed by US – Trade War Phase 1

$50 billion Tariffs in Chinese Goods from US – Trade War Phase 1

Share this article

United States announced the imposition of $ 50 billion tariffs in Chinese goods by revising a tariff list of 800 products. President Trump is also getting ready for a second phase and a second list of $100 billion this time.

The $50 billion list seeks to eliminate the impact on U.S. consumers by selecting goods where there are alternative supplies from other countries.

Of course, China is ready to respond immediately to Trump’s protectionist measures. It has already published a respective list threatening tariffs on $50 billion in U.S. goods.

However, China is open to a new round of discussions and negotiations. Chinese State Councillor Wang Yi said there were two choices when it came to trade. “The first choice is cooperation and mutual benefit. The other choice is confrontation and mutual loss. China chooses the first”.

The $ 50 billion tariffs come after last month’s joint statement by the two largest economies of the world on Trade Consultations. However, the day after the joint statement Trump told reporters he was not pleased with recent talks, calling them “a start”.

Besides, EU countries on Thursday supported a plan to impose import duties on 2.8 billion euros ($3.3 billion) worth of U.S. products in response to USA respective tariffs on steel and aluminium imported by EU, Canada & Mexico.

START TRADING

MARKETS

The dollar’s index against its major traded rivals inched up on Friday. The greenback was up almost 1% against Yen on the week. The currency pair, sensitive to shifts in risk sentiment could be impacted by developments later on Friday in the U.S.-China trade dispute.

The Sterling was down close to 7-month lows following strong US data for retail sales. Against the common currency, the pound eased after a rally on Thursday when the ECB said it would keep interest rates unchanged through the summer of 2019.

The Euro recovered on Friday after hitting a 10-month low on Thursday. It was the worst day in 2 years for the single currency, as ECB postponed rate hikes.

Oil prices dipped near $ per barrel ahead of OPEC meeting and prospects of increasing output. Many analysts expect an agreement on a rise in output.

Sources: Reuters, Euronews, bbc.com

PLEASE NOTE The information above is not investment advice.