China Retaliates in Trade War with the US

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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?