China has announced that it will impose additional tariffs on goods from the United States starting tomorrow.
Beijing will now tax American imports at a rate of 84 percent, which is an increase of 50 percent compared to the previous Chinese tariffs.
The decision comes after America imposed an additional tariff of 50 percent on Chinese goods earlier this week. This followed two previous measures, of 34 percent and 20 percent, so the total US tariff rate on Chinese exports as of this morning is 104 percent.
China had previously informed the World Trade Organization (WTO) that the US decision threatens to further destabilize global trade.
“The situation has escalated dangerously. As one of the affected members, China expresses deep concern and resolute opposition to this irresponsible move,” the Chinese government said in a statement.
-Politico: EU will hit America where it hurts most-
The European Union will respond creatively to the tariffs imposed by US President Donald Trump – targeting production in “red” federal states, where his biggest supporters are, writes Politico.
Last Wednesday, Trump announced the introduction of tariffs on almost the entire world, and the EU set a percentage of 20 percent.
European Commission President Ursula von der Leyen then said that the alliance is “ready to reach a good deal” with the US and proposed “zero tariffs on industrial products”, but for the Republican obsessed with the trade deficit that the US has with countries around the world, this is “not enough”.
He wants the EU to commit to buying energy products in an amount “equal to” the European trade surplus with the US. Trump mentions the amount of 350 billion dollars, although both American and European authorities estimate that it is significantly lower, around 235.6 and 216.8 billion dollars.
Politico writes today that the response will be “perhaps less aggressive than expected, but it will be creative and hit the US where it hurts the most.”
According to an “internal document” obtained by Politico, the European Commission is planning tariffs of up to 25 percent on $22.1 billion worth of U.S. exports. The list includes agricultural and industrial products such as soybeans, meat, tobacco, iron, steel and aluminum, which are particularly dependent on transatlantic exports.
Politico writes that Europe’s “trade nerds have shown unusual creativity” and are using “passive aggression” to strike a blow at Trump’s base.
The EU is expected to vote on the tariffs today, and they will then go into effect according to a specific calendar.
As an example of this “creativity,” the American media outlet cites soybeans – an agricultural product that is economically extremely important to Republican strongholds. The EU could impose a 25 percent tariff on the United States, the world’s second-largest producer and exporter of soybeans, from December 1.
