The trade war between the United States and China reaches a new highlight. Today, the Chinese government announced harsh countermeasures in response to the recent tariff increases by President Trump – exactly what economists have been warning for weeks.
China cannot be intimidated
One of China’s most striking measures is the introduction of an input tax of 34% on all American products. In this way Beijing makes it clear that it is not intimidated by the economic muscle display of the United States.
This solid counter -move comes in response to the trade barrier that President Trump set up on 2 April. He found a wide range of countries and sectors, but saved strategic industries such as microchips and medicines somewhat. China opts for a different approach: the retaliation measures are wide, strict and without exceptions – a powerful signal that there is no room for compromises.
American companies offside
In addition, China has added eleven American companies to the blacklist of ‘unreliable entities’. According to Beijing, these companies are involved in military cooperation with Taiwan – an extremely sensitive subject for the Chinese government. The practical consequences are great: these companies are completely excluded from the Chinese market. No trade, no investments and no form of cooperation within the national borders is still permitted.
In addition, China announced that it limits the export of seven rare earth metals. These raw materials are essential for the production of smartphones, electric vehicles and military applications, among other things. Because China has almost a monopoly on the processing of these metals, this measure forms a strategic thump for the United States and its allies.
Consequences for the cryptomarket
The powerful counter -reaction of Beijing directly causes unrest in the global financial markets – and the cryptomarkt is also not spared. Ethereum (ETH) has again dropped under the $ 1,800 border, while Solana (SOL) currently notes around $ 115. This makes Sol more than 60% lower than its all-time high from just two months ago.
What does Washington do?
The big question now is: how does Washington respond? If the White House decides to further increase the rates, there is a good chance that the tensions will escalate further – with a possibly a new tap for the cryptomarkt as a result.
For now it is waiting. But one thing is clear: the economic struggle between the two superpowers is becoming grim every day.
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Source: https://newsbit.nl/china-slaat-terug-34-handelstarieven-op-alle-amerikaanse-producten/
