In a publication made in Truth Social on Wednesday, the president of the United States (USA), Donald Trump, said the commercial agreement with China is made and added that it is subject to its final approval and that of Chinese President Xi Jinping.
“The complete magnets, and any rare land necessary, will be supplied, in advance, by China. Likewise, we will provide China what was agreed, including Chinese students using our universities (which has always been good for me!),” Trump said and added:
“We are obtaining a total of 55% tariffs, China is getting 10%. The relationship is excellent! Thank you for your attention to this matter!”
Market reaction
The American dollar index (USD) showed no reaction to this holder and was last moving laterally slightly above 99.00.
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.
