China announced retaliatory tariffs on imports from the U.S. on Monday (5/13) as a response to tariff increases by the Trump administration last week. Rates on $60 billion in U.S. goods will now be taxed at up to 25% from the previous 10%.
This is the first big move by China in the re-ignited trade war with the U.S. This new super-power chess match has the whole world watching and speculating as the stability of the global economy is at stake.
Some sources, like the New York Times, fear that the “digging in” mentality on both sides is going to leave no clear path to de-escalation, resulting in an even longer-term trade war.
Others, like CNN, report that this game simply cannot be sustained due to the fact that the U.S. and China are each other’s biggest trading partners and need each other in order to be successful.
While President Trump and President Xi Jinping have discussed meeting next month at the G20 Summit in Japan, no solid future trade negotiations are scheduled. The world is left wondering what the next move will be.
Stay tuned for updates.
Blacksmith International is a global supply chain management company. If you need help understanding tariffs and how they affect your product business, then contact us here
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