China strikes back in the trade war with the US. From 1 June, import duties on US $ 60 billion of American goods will be raised to 25 percent. The stock exchanges continue to fall after the announcement.
Three days ago, the United States raised import rates from 10 to 25 percent to $200 billion worth of Chinese goods. Donald Trump then warned that the trade dispute between the two countries would worsen if China opted for “retribution”.
“I openly say to President Xi and my many friends over there that China will be hit very hard if you don’t make an agreement. Companies will be forced to leave China. Too expensive to buy in China. You had a good deal that was almost completed, but you left,” the American president said on Twitter.
No new date
High-level trade talks were terminated without an agreement in Washington on Friday. Trump repeatedly stated that China will pay additional taxes.
There is no new date for negotiations. The ongoing trade war between the world’s two largest economies weighs on the markets and on the global growth forecasts.
The American stock markets were 1.7 percent lower at the opening. The other stock exchanges also went deeper in the red.