The trade war has intensified as China on Wednesday announced retaliatory tariffs of 25 percent on 106 US products.
The trade war has intensified as China on Wednesday announced retaliatory tariffs of 25 percent on 106 US products. The list includes products ranging from soybean, cotton, frozen beef to cars. Earlier, the US under Donald Trump had imposed tariffs on over 1,300 product categories focused on China’s industrial machinery and technology exports. In a deep contrast to America’s list, the Chinese list has been designed keeping in mind signature US exports including important agricultural commodities such as soybeans, frozen beef, cotton and others which are produced in states from Iowa to Texas that voted for Donald Trump in the 2016 presidential election.
Iowa is known to produce abundant food commodities and stands second in terms of soybean production in the United States. Donald Trump emerged victorious in agriculture-based states such asl California, Iowa, Nebraska, Texas, Minnesota, Illinois, Kansas, Wisconsin, North Carolina, Indiana and others.
Such a calculated action by China is most likely to hurt prospects of farmers in these states. “This is a real game changer and moves the trade dispute away from symbolism to measures which would really hurt US agricultural exports,” Reuters reported citing Commerzbank commodities analyst Carsten Fritsch.
The US has already slapped 25 percent tariff on steel and 10 percent on aluminium. This action prompted immediate warnings from the EU and China, and outrage from other trading members. It also resulted in a steep fall in US equity indices, however shares of US steel and aluminium producers jumped.