Wang Xin, the head of the Shenzhen’s cross -border electronic commerce association, which represents more than 3,000 Amazon vendors, told Reuters on Thursday that Chinese companies that sell products on Amazon are considering increasing prices for the United States (USA) or looking for new markets due to a large blow of the tariffs of US President Donald Trump.
Outstanding comments
- Tariffs make it very difficult to survive in the US market.
- Some sellers are still sending products to the US, others are trying to find new markets.
- The US tariffs will lead to the ‘collapse’ of smaller and medium enterprises, rapidly accelerating the unemployment rate in China.
- The US tariffs are truly an ‘unprecedented blow’.
Market reaction
The Chinese proxy, the Australian dollar (Aud), shrugs before these headlines while the Aud/USD pair advances 0.24% in the day to 0.6170 at the time of publication.
Commercial War between the US and China Faqs
In general terms, “Trade War” is a commercial war, an economic conflict between two or more countries due to the extreme protectionism of one of the parties. It implies the creation of commercial barriers, such as tariffs, which are in counterbarreras, increasing import costs and, therefore, the cost of life.
An economic conflict between the United States (USA) and China began in early 2018, when President Donald Trump established commercial barriers against China, claiming unfair commercial practices and theft of intellectual property by the Asian giant. China took retaliation measures, imposing tariffs on multiple American products, such as cars and soybeans. The tensions climbed until the two countries signed the Phase one trade agreement between the US and China in January 2020. The agreement required structural reforms and other changes in China’s economic and commercial regime and intended to restore stability and confidence between the two nations. Coronavirus pandemia diverted the attention of the conflict. However, it is worth mentioning that President Joe Biden, who took office after Trump, kept the tariffs and even added some additional encumbrances.
Donald Trump’s return to the White House as the 47th US president has unleashed a new wave of tensions between the two countries. During the 2024 election campaign, Trump promised to impose 60% tariff particularly in investment, and directly feeding the inflation of the consumer price index.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
