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.

A newspaper published by the ruling Communist Party, Global Times, stated that the United States is playing the provocateur role in this trade war and that China is defensive. They added that China has enough ammunition and they should be able to defend their existing trade interests with fairness and according to the rules.

China’s Response

Starting July 6, China will impose 25% taxes on 545 U.S. products. According to the Ministry of Finance, these products will include whiskey, salmon, soybeans, orange juice, electric cars, lobsters, and cigars.

Most of the products are farm goods, which will hit Trump’s supporters in rural areas.

Beijing is trying to minimize the impact on their economy. They picked U.S. products that they can replace by importing them from other countries, such as Australia or Brazil.

Questions from the American People:

If China imports more goods from other nations rather than the U.S., will Trump reconsider the higher tariffs? Or will he enact higher tariffs from China’s trade partners? Will he pressure them to raise their prices to China?