After his meeting with the Spanish prime minister, Pedro Sánchez, the Chinese president, Xi Jinping, said that “there is no winner in a tariff war.”
Additional quotes
- No matter changes in the external environment, China will strengthen their trust.
- To maintain determination and concentrate on doing your own.
- China and Europe must maintain association and adhere to open cooperation.
- China and Europe must comply with international responsibilities and jointly maintain the order of international trade.
- Both parties must not only safeguard their own interests, but also international equity and justice.
Market reaction
At the time of writing, the futures of the US S&P 500, the Risk Barometer, are rising 1.08% in the day, while the US dollar index (DXY) regains losses to quote about 100.50.
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.
