In consequence to Washington's decision, which had previously increased duties on China by an additional 10%, Beijing announced the introduction of another tariff increase – from 10 to 15% for agricultural and food products imported from the USA, specified as poultry, pork, beef, soy, sorghum, fruit, vegetables and dairy. This category of products is not accidental due to the fact that it is these goods that Americans export to China in the largest quantity. They account for 1.2% of full exports to this country. Among the 3 most crucial categories are besides oil and gas, and in 3rd place drugs.
If the United States wants war – whether it's customs, trade or any another kind of war – we're ready to fight to the end. – reads the Chinese embassy in the US on platform X. In a akin way, the press spokesperson of Chinese head of the MFA Wang Yi spoke.
China's MFA spokesman, Lin Jian, stated that the US disseminating all kinds of false information on fentanyl, slandering and blaming China and expanding duties on Chinese imports due to fentanyl.
Donald Trump warned in his speech before the U.S. legislature countries that introduce additional barriers to importing American goods, announcing upcoming reactions from the White House. He stated that customs were a way to defend national interests.
They defend the soul of the nation. He said.
It's not the first specified war.
During his first term, Donald Trump indicated that China poses a serious threat to the US and introduced unilateral trade duties on the state. Beijing initially delayed consequence with retaliatory duties, attempting to negociate a peaceful solution. Despite these efforts, there has been a trade war that has shaken commodity and financial markets worldwide. The agreement was signed in February 2020, whereby China undertook to increase purchases of American products, strengthen intellectual property protection and facilitate access for US companies to the Chinese market.
The Effects of Customs War
Customs war is simply a situation where 2 or more countries introduce reciprocal tariff increases on goods imported from another country as a form of economical pressure. This, in turn, leads to an increase in the cost of imported goods and can so affect the increase in prices for consumers, the decline in global trade and the weakening of common economical relations between countries. In the long term, it can even lead to an economical downturn.
