On Saturday, China responded to the trade dispute with the United States. China raised import duties on American goods, including electric cars, soybeans, and whiskey, all of which worth a total of $34 billion.
The Chinese government stated that the response is equal to Trump’s tax hike on Chinese goods. Trump had a conflict with Beijing over their technology policy. Some companies are worried that this conflict could escalate quickly and lower global economic worth.
China is Fighting Back
A Commerce Ministry official stated that China is not looking to have a trade war, but that they have to fight back. Beijing was also trying to narrow their billions of dollars’ worth of surplus with the U.S. by buying more American natural gas, farm goods, and other products.
China and the United States have the biggest trading relationship in the world. However, official relationships are spiraling downward because of American complaints against Beijing’s industry development tactics. Officials think that China’s tactics are hurting American companies. Japan, European, and other partners have very similar complaints. However, Trump was very direct about threatening Beijing and challenging China.