China not backing down as Trump ramps up tariffs
At the end of last week, President Trump announced a third round of tariffs on Chinese goods, a 10% levy on $300 billion worth of merchandise, including clothing, footwear, toys, and electronic products. That move comes amid an intensifying Sino-American trade war, one that has no foreseeable end. The new round of tariffs means that almost every product imported from China will carry a tariff. Who are the winners and losers of this war?
Chinese exports have dwindled since the trade war began, and with it also the growth of the economy. China reported a growth rate of 6.2% in the last quarter, the lowest in 27 years. Exports make up 20% of the Chinese economy, as opposed to just 12% in the United States.
Following Trump’s announcement on Twitter, stocks fell across the world, including in New York, where the Dow Jones Industrial Average continued to fall on Monday. Markets in Europe and Asia were also down sharply. The intensification of the trade war between the world’s two largest economies comes amid a global slowdown in manufacturing and fears of recession in the United States.
Tariffs on consumer goods will hit especially hard. According to Reuters, 42% of clothing and 69% of footwear sold in the United States is imported from China.
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