Whew! Roommates, the word “tariffs” has been taking over headlines on news sites and content on social media. That’s because the United States and China, in particular, have been tussling over trade power. But what do all these percentage increases actually mean, especially for the American people? And where do President Donald Trump and China’s officials stand on the matter. Well, let’s break it all down for a closer look!
RELATED: Trade War? Canada, Mexico & China Retaliate Against Trump’s Tariffs Policy Like THIS
President Donald Trump paused import taxes this week for several other countries. However, he raised tariffs on China, capping it at 145%. On Wednesday, the president said China would face 125% tariffs, but he did not include a set 20% tariff tied to China’s role in fentanyl production.
China Claps Back At U.S. By Increasing Tariffs To 125%
On Friday (April 11), China announced that it will raise tariffs on U.S. goods from 84% to 125%, per the Associated Press. It’s the latest move in an escalating trade war between the world’s two largest economies that has markets SHOOK and raised fears of a global slowdown. If you didn’t know, we’re talking about a beef between the world’s No. 1 (U.S.) and No. 2 (China) economies.
China has slammed the policy as “economic bullying” and promised countermeasures. The new tariffs on the U.S. begin Saturday (April 12). In a statement announcing these new tariffs, a Chinese Finance Ministry spokesman clowned the trade tussle. He said the repeated raising of tariffs “will become a joke in the history of the world economy.”
“However, if the U.S. insists on continuing to substantially infringe on China’s interests, China will resolutely counter and fight to the end,” the spokesman said.
Meanwhile, China’s Commerce Ministry said it would file another lawsuit with the World Trade Organization against the U.S. tariffs.
“There are no winners in a tariff war,” Chinese leader Xi Jinping said during a meeting with the Spanish Prime Minister Pedro Sanchez. “For more than 70 years, China has always relied on itself … and hard work for development, never relying on favors from anyone, and not fearing any unreasonable suppression.”
Chinese Foreign Minister Wang Yi also spoke out on Friday. Wang Yi said China stands firm against Trump’s tariffs not only to defend its own rights and interests but also to “safeguard the common interests of the international community to ensure that humanity is not dragged back into a jungle world where might makes right.” Wang also said China will “work together with other countries to jointly resist all retrogressive actions in the world.”
What & Who Will Be Impacted By This Tussle?
Chinese tariffs will affect goods like soybeans, aircraft and their parts, and drugs, which are among the country’s major imports from the U.S.
Beijing, meanwhile, suspended sorghum, poultry, and bonemeal imports from some American companies last week. It also increased export controls on rare earth minerals, which are important for various technologies.
The United States’ top imports from China include electronics, such as computers and cell phones, industrial equipment, and toys. Trump’s 145% tariffs on China mean consumers and businesses are likely to see prices rise on those products.
White House officials hope the import taxes will create more manufacturing jobs by bringing production back to the United States. However, some experts say it’s a politically risky trade-off that could take years or never happen.
RELATED: What Happens Now? President Trump Slaps 25% Tariff On Imported Autos & Parts (VIDEO)
Associated Press staff contributed to this report.
