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Donald Trump announced on Thursday that he would be imposing an additional 10 per cent tariff on imports from China, along with proceeding with tariffs on Mexico and Canada from next week. This move has raised concerns about the possibility of a global trade war.
Earlier this month, Trump had postponed the proposed tariffs on Mexico and Canada just hours before they were set to take effect, granting a one-month extension to the US’s major trading partners.
In a post on Truth Social, Trump confirmed that the tariffs scheduled for March 4th would indeed be implemented as planned. He also revealed his intention to impose an additional 10 per cent tariff on China on March 4th, in addition to the existing 10 per cent tariffs.
Furthermore, Trump reaffirmed his plan for reciprocal tariffs affecting countries and products worldwide, set to begin on April 2nd.
Following Trump’s announcement, the offshore renminbi weakened against the dollar, while the dollar strengthened against other major currencies. Stock markets, including the S&P 500, reacted negatively to the news.
These actions by Trump are part of the aggressive trade policy his administration has pursued since returning to the White House. The potential escalation of trade tensions poses a significant risk to the global economy.
China’s embassy in Washington criticized the new tariffs, emphasizing that there are no winners in a trade war and calling on the US to rectify its actions.
As Trump considers imposing 25 per cent tariffs on EU products, the UK Prime Minister’s visit to the White House today is expected to address trade concerns between the two countries.
Trump’s latest statements signal a shift from his previous remarks, indicating a possible delay in imposing tariffs on Canada and Mexico. The urgency to prevent these measures will likely result in diplomatic efforts in the coming days.
The tariff escalation with China follows previous actions aimed at pressuring Beijing to address specific issues.
Recent discussions between the US and China have centered around the possibility of a trade deal to address the trade deficit and create jobs. However, formal negotiations have yet to take place.
The announcement of additional tariffs on China coincided with the confirmation of Jamieson Greer as the US trade representative. The potential impact of these tariffs on the global economy remains a concern.
Additional reporting by Christine Murray in Mexico City