A joint statement has been issued by the Ministry of Commerce and the Ministry of Foreign Affairs of China, noting that “they will take more measures to oppose the Harassment of the USA.”
Additional quotes
- Reaffirm that they will continue to take resolutive countermeasures to safeguard their interests.
- There are no winners in a commercial war.
- If the US insists on its own path, China will continue until the end.
- China does not want to fight in a war of tariffs/commercial, but it will not fear one.
- China will not be left with crossed and will allow them to deprive them of their rights and interests.
Market reaction
The AUD/USD has cut profits after these comments, negotiating at 0.6170, even rising 0.24% in the day at the time of the press.
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.
