Explained: China’s retaliation to U.S. tariffs

CGTN Europe

There’s been another significant escalation in the global trade war, as China has increased tariffs on U.S. goods to 84% - in response to Washington’s 104% tariffs on Chinese imports.   CGTN’s Iolo ap Dafydd has more.   #China #US #Tariffs #Trade #TradeWar

Transcript

00:00Another significant escalation in the global trade war.

00:03China has increased tariffs on U.S. goods to 84%

00:08in response to Washington's 104% duties on products from China.

00:13As those duties took effect, along with tariffs on dozens of other countries,

00:19Beijing accused the United States of unilateralism, protectionism and economic bullying.

00:25China says it has the determination and means to fight on.

00:30It also has added six more U.S. businesses to its unreliable entity list.

00:38This is the latest response in the tit-for-tat on tariffs between the world's two biggest economies.

00:44Let's go back to February.

00:46Trump imposed 10% duties on all Chinese imports.

00:50A month later, it doubled those tariffs.

00:52China responded with additional tariffs of up to 15% on key U.S. agricultural imports.

01:00April 2 was called Liberation Day by Donald Trump.

01:03He shocked the world's markets, targeting almost all countries with so-called reciprocal tariffs.

01:09China was hit with an additional 34% duty.

01:14Two days later, China responded with an extra 34% tariff on all U.S. goods.

01:21And now, April the 9th, another increase on Chinese imports up to 104%.

01:28Beijing's response just hours later, tariffs on U.S. goods raised to 84%.

01:35Well, our correspondent, Yolo Abdaver, has been keeping an eye on this very fast-moving story.

01:41Yolo, what are the main lines coming out currently?

01:44Well, there are plenty of developments each day.

01:46Those, which you've just reiterated now, in terms of the percentage, eye-watering.

01:52But the response from China has come in this China-U.S. economic and trade relations.

01:58And in its conclusion, it says trade wars produce no winners and protectionism leads up a blind alley.

02:06So, I'd say that Beijing is still hopeful that there can be negotiations.

02:10And Donald Trump himself has said that now he's hearing from dozens of different countries and leaders,

02:16state leaders, who are trying to negotiate with the United States.

02:20And don't forget the World Trade Organization dispute between China and the U.S.,

02:26in terms of which began last February, that is still ongoing.

02:30What's changed again this morning, apart from that increase of tariffs,

02:34is this list of 12 companies, which are being restricted in terms of importing and exporting in China,

02:4212 American companies, and also a banned list of six companies,

02:49most of them to do with defence and military in some aspects.

02:55And they've been banned from, forbidden from doing any kind of business with China as it stands now.

03:01What else is happening?

03:02Well, the European Union has also approved retaliatory duties against U.S. imports,

03:09totalling around $24 billion.

03:10That will start next week.

03:13And also the impact on stocks and bonds.

03:15They've slumped again.

03:17There is concerns now, heightened concerns, I'd say, about a global recession in many, many countries,

03:22including, of course, the European Union as a bloc.

03:25The value of government bonds is not what it used to be, and it was considered, well, for decades as the safest of all.

03:35And it seems that investors are beginning to lose confidence in the U.S. as the cornerstone of a global economy.

03:41Why are we saying that?

03:43Because it seems to be losing that image of a safe haven for investors.

03:48The yield has gone up, which means that people are selling.

03:51And so that's a big change.

03:53It's also having an impact on U.K. bonds and China's stance, as we've just been discussing, in terms of the escalating U.S. tariffs.

04:01So the position now in this 51-page document is actually clear, what China is accusing the American administration of,

04:10and it's saying that this confrontation will bring nothing but damage, and, of course, the uncertainty is going to impact all of us.

04:17Everybody who buys and uses stuff which is built or exported across boundaries,

04:25that's going to increase the cost for just about everybody across the globe if this continues.

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