On Friday, the US imposed new tariffs of 25% on Chinese goods of estimated value of $50 bn. In a matter of hours the Chinese government responded with its own tariffs of the same value on US imports.
Both lists are aimed at 500 goods, ranging from beef to pork, dairy products, seafood, tobacco and soybeans. China is the biggest buyer of US soybeans. But that is not all the Chinese government said that it would put additional $16bn tariffs on coal, crude oil, natural gas and medical equipment later down the line.
This is not all however. The US government said that it plans to release a plan that would restrict Chinese investments in the US, alongside further limiting Chinese purchases of advanced technology from the USA.
Of course President Trump threatened to triple the tariffs to $150bn in retaliation.
This turn of events shows just how all over the place US policy is. A few weeks ago they announced a $200bn plan of Chinese purchases and now the situation seems to going opposite of the good climate of that deal.
An official from Xinhua news agency said: “The wise man builds bridges, the fool builds walls. With economic globalisation there are no secluded and isolated islands.”
Regardless, the war of interests between US-China is not a simple one and will definitely have many twists and turns for the observer and analyst.