The trade war between the U.S. and China is escalating, as China announced 125% tariffs on American products entering the country, one day after President D. Trump imposed new high tariffs on China, reaching 145%. [1], [2]
Chinese President Xi Jinping is urging the European Union to align with China against the “bullying” tactics of the U.S., stating that “there are no winners in a trade war.” Meanwhile, U.S. President Donald Trump says he hopes to reach an agreement with Beijing soon, one that will be beneficial for both countries.
D. Trump suspended tariffs on dozens of countries, excluding China, for 90 days (with a 10% tariff for all), and the EU lifted its retaliatory measures for 90 days.
Meanwhile, the price of gold has hit record levels as investors seek safer assets amid the declining value of the dollar against other currencies.
Stock markets, which particularly declined last week, were once again shaken after China’s announcement on tariffs, with major European and many Asian stock markets falling due to uncertainty.
The New York Times reports that some Republican lawmakers, “caught” between their strong opposition to tariffs and their reluctance to criticize Donald Trump for the issues he has created, were praising the 90-day suspension of higher tariffs for most countries.
