Now it becomes serious in the global business ring! US President Donald Trump and China’s head of state Xi Jinping have a heavy duel for rates, countermeasures and retribution. The fronts harden, the exchange of success escalates – and that should just be the beginning.
At the weekend, Trump burst: a ten percent customs hammer on all goods from China! Beijing’s response followed immediately. XI Jinping counters with cordial import duties, especially on fossil fuels. It starts next Monday – then the new regulation of the Chinese will come into effect.
Now it will be very expensive!
No things: immediately after the American rates have come into effect, the Ministry of Trade in Beijing announced further measures on Tuesday. Coal and liquid gas from the US? Now occupy with a 15 percent extra inch! Crude oil and certain industrial products from America? Ten percent at the top!
But that’s not all. Trump had already waved rates against Mexico and Canada, but quickly rowed back and suspended the rates. But with his greatest Asian rivals, he remains tough. There could soon become a crisis call between him and XI Jinping, but for the time being Trump wants to go through his hardness policy of hardness to China.
What’s behind it?
Franz Rößler, the Austrian business representative in Beijing, explains: “Trump had even announced 60 percent rates in China in the election campaign.” This ten percent was almost harmless in comparison. But China is not willing to tolerate it.
Rößler warns: “Beijing builds up negotiating forces.” A possible movement: China can reduce the export of rare earths-they are indispensable for American high-tech products. At the same time, the United States blocks the export from high -quality chips to China. A mutual economic war with an uncertain outcome!
Will China add Klein?
Trump wants the Asians to import more from the US. But that is not that simple: Chinese products are now often better quality and higher quality than the American! Beijing can at least be able to accommodate Trump from the US from the United States.
So far, Xi Jinping America has treated very carefully and has not taken countermeasures, not even with the 100 percent rates on electric cars through the United States. On the other hand, the Chinese responded to the EU rates on electric cars with contradictions on meat and milk.
What does that mean for Austria?
The alarm bells also donate with us! A study by the Boston Consulting Group shows that the companies of Austria fear the consequences of the trade war.
A quarter of the top managers already see margins and profit in danger. A third has even worked out emergency plans. And it can get worse: Trump is also in danger of taking rates for EU products.
It remains exciting: how far does Trump and XI drive the game? And who gives it up first? One thing is clear: there are no winners in this trade war – just many losers!
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
