China announces new tariffs on 106 US products

On Wednesday, the Chinese nation has announced some additional tariffs on about 106 products of the United States in a special move which is very likely to bring about some concerns on a global scale due to the trade war between two of the largest economies of the world. The exact date of implementation of the new charges has still not been announced by China but the Ministry of Commerce of China has stated that these new tariffs are brought forward with the main aim of targeting about more than fifty billion dollars of products of the United States on an annual basis. The Chinese nation announced that the 25 percent levy on the imports of the United States includes products like cars, soybeans and whiskey.

This particular move by the Chinese nation came 24 hours after the president of the United States, Donald Trump revealed the list of imports of Chinese products which he aimed as a target as a part of the crackdown on which he is of the viewpoint that those are unfair trade practices. The tariffs proposed by US president covers the sectors which includes the products that are used for information technology, robotics, aerospace and communication technology. The showdown of trade between the two nations has actually rattled investors and has given rise to market fears that this particular dispute in trade could very soon take the shape of a complete trade war.

Peter Oppenheimer who is the chief global equity strategist of Goldman Sachs told CNBC that he thinks that it is a clear trade war at the very least when he was asked whether the global markets were officially observing an all-out trade war or not. He also added that the anxiety in the market is being reflected which could be escalated into a general war of trade. On Wednesday, the nation of China proposed some countermeasures which resulted in the plunging of stocks of the United States. The Dow Jones industrial average gained more than about 450 points along with Boeing and Caterpillar leading all stocks in the index. On the other hand, the announcement on Wednesday by China had also prompted European stocks to extend the losses with the pan-European Stoxx 600 coming down to a session low of 0.8 percent very shortly after the announcement of the news.

January 16, 2022 - 03:53
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