China Increases Tariffs on U.S. Goods and Imposes Sanctions on American Companies
Beijing has raised tariffs on American products and imposed restrictions on 25 companies, signaling its readiness for a prolonged economic confrontation.
On Tuesday, China announced new import tariffs on U.S. goods, including agricultural products and food, according to Irish Examiner.
The tariff increase, ranging from 10% to 15%, will take effect on March 10. This move comes in response to the recent U.S. tariff hikes on Chinese goods, escalating the economic standoff between the world's two largest economies.
Simultaneously, Beijing placed 25 American companies on its export and investment restriction list, citing national security concerns. Unlike previous sanctions, this time, major multinational corporations were not affected.
China’s Ministry of Foreign Affairs stated that the country will not bow to pressure and views the U.S. actions as an attempt at economic blackmail. Washington, on the other hand, claims that the new tariffs were imposed due to China’s inaction in combating illegal drug trafficking.
Experts note that Beijing is still avoiding drastic measures, leaving room for negotiations. However, each new tariff increase makes a compromise less likely.
U.S. stock markets plummeted on Monday after Donald Trump announced the immediate implementation of tariffs on imports from Canada and Mexico, according to CTV News.
The S&P 500 index dropped by 1.8%, the Dow Jones fell by 649 points, and the Nasdaq declined by 2.6%.
Trump stated that there would be no further negotiations and that the tariffs would take effect on Tuesday. This crushed Wall Street’s hopes for a more lenient trade policy. As a result, shares of major companies such as Nvidia and Tesla saw sharp declines.
Additionally, weak economic data further dampened the outlook. U.S. manufacturing activity slowed, and inflation expectations increased.
Against this backdrop, the yield on 10-year Treasury bonds dropped to 4.16%, reflecting investor concerns about the state of the economy.
Earlier reports indicated that Canada is prepared to impose tariffs on $155 billion worth of U.S. goods if the new American tariffs take effect, according to Prime Minister Justin Trudeau.
It was also revealed that U.S. President Donald Trump has announced tariffs on Canadian and Mexican goods, justifying the move as part of measures against drug trafficking and national security protection.