Trade wars continue to be topic number one on the financial markets as today the latest round of tariffs exchanged between the United States and China comes into effect. With multiple duties implemented over the past months, it seems that the world’s two largest economies are incapable of reconciling their differences and making peace.
All of the tariffs first originated in the United States, while countries affected, such as China, have enacted tariffs on their own as a compensation for the fees caused by the US. This has led China to publicly call the United States a bully, since Trump is using tariffs as leverage to make other countries do what the US wants.
The latest tariff by the US on $200 billion of Chinese products is actually just 10%, despite Trump threatening a tariff of 25%. However, if the conflict is not resolved, the tariff will likely increase.
After several rounds of negotiations between the US and China failed, now China decided not to take part in the latest talks proposed by the States.
