China Signals Retaliation as Trump Proposes New tariffs
BEIJING – China has warned the United States of potential retaliation after former President donald Trump proposed imposing 100% tariffs on all Chinese imports,escalating trade tensions between the two nations. The threat, made by Trump on his Truth Social platform, sent ripples through global financial markets on Friday, prompting a selloff in stocks and initial declines in cryptocurrency values.
The move comes as Washington has recently added a number of Chinese firms to its export control list, aiming to curb the use of foreign affiliates to bypass restrictions on chipmaking equipment and other sensitive technologies. Trump’s tariff proposal represents a significant hardening of stance on trade with China, possibly disrupting global supply chains and impacting businesses and consumers worldwide. The UK’s FTSE 100 share index fell almost 1% on Friday following the announcement,with futures markets indicating possible further losses in london and New York on monday.
Bitcoin, which initially tumbled 8% after Trump’s post, partially recovered, rising by 1.5% on Sunday as Beijing has, so far, refrained from immediate retaliatory measures.
Analysts suggest the threat could be a negotiating tactic. “A strategy where outlandish and ridiculous tariff figures are threatened, in an attempt to focus minds, extract concessions from the other party, and ultimately come to agreement faster than otherwise might’ve been possible,” explained Michael Brown, a senior research strategist at Pepperstone.
The potential impact extends beyond financial markets.The US agricultural sector, especially soybean farmers, previously suffered during the Trump management’s trade war with China, raising concerns about renewed disruptions to key export markets.
