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China has imposed reprisal prices in the United States, said its embassy in Washington said on Sunday – hitting around $ 14 billion in goods and hoping for a trade war between the two largest economies in the world could be avoided.
Beijing announced the prices last week in response to an American decision to impose an additional 10% levy on Chinese products, which US President Donald Trump described as “opening salvo” in a renewed commercial offensive against the China.
Compared to American coverage prices, China’s measures – which target American exports of liquefied natural gas, coal, crude oil and agricultural equipment as well as car products with levies from 10% to 15% – were considered to be creating space for negotiations to avoid a large commercial conflict.
But on the deadline on Sunday, there was no news from the China Agreement and the Embassy of Washington said that the prices had entered into force at 12:01 pm Beijing time on Monday (11:01 am on Sunday in Washington DC ).
Last week, Beijing also announced an antitrust survey on Google, whose search engine is blocked in China, and Illumina, an American biotechnology company. And he has put the portfolio company for American clothing, Calvin Klein and Tommy Hilfiger.
China highlighted its control of the rare land supply chain by restricting exports to the United States of five critical metals used in defense industries, solar panels, electric vehicle batteries and others green energy products. China produces around 60% of rare earths in the world and represents 90% of treatment in industry.
The financial markets had first hoped that Trump could follow the same gaming manual with China as for Canada and Mexico – against which he also announced prices, but then gave a month of stay after last interviews Minute with their leaders.
Trump had suggested that he would speak with Chinese President Xi Jinping, but later said that he was “without haste” to do so.
Experts suggested that Beijing could have opposed Trump’s tactics, announcing the prices just two days before their entry into force and before approaching Chinese officials for negotiations.
Trump accused China, as well as Mexico and Canada, not to slow down the flow of fatal fentanyl opioid in the United States.
He also asked the US trade representative to investigate Chinese compliance with the first phase of the trade agreement he sealed with China in 2020 during his first mandate in the White House, under which Beijing agreed to buy more American products.
The USTR should report the results of the survey on April 1, when there could be another confrontation, analysts said.
Beijing took certain measures to stem the fentanyl ingredient flow – known as pioneering chemicals – from a summit in San Francisco at the end of 2023 involving the US president of the time, Joe Biden and XI. But the Trump administration accuses Beijing of subsidizing Chinese companies that make precursors.
The American-Chinese commercial relationship has shaped the savings of the two countries in recent decades.
But the share of China of total American imports has since dropped since Trump introduced prices during his first mandate, which led some analysts to suggest that Beijing could be better placed this time to support the president’s measures.
Frederic Neumann, chief economist of Asia at HSBC, said that many Chinese companies could endure a 10% tariff on their goods, since the country’s export prices have decreased much more than those of Rivaux producers Over the past two years.
“If there was only 10% tariff on China and we left that, I think that many investors would sleep more comfortably,” he added. “The great concern, of course, is that it is a prelude to potentially more important commercial restrictions.”
