One 14th April 2025 ▪
4
min at reading ▪
China does not intend to give up new US protectionist measures. In response to the outbreak of the prices imposed by Donald Trump, Beijing retreated without a detour by demanding immediate abolition of duty, and feared the effects of the main economic shock.
American Prizes: Risky Strategy for the Global Economy
US decision to hit China 145 % of historical customs tax reveals the extent of economic conflict that could lean the world economy in a sustainable recession. Initially set at 10 %, these prices increased rapidly and brutally emphasized the pressure on Beijing. In a few days, the trade war went from a simple diplomatic quarrel to the front economic confrontation.
On the Chinese side, the reaction quickly set out. The Chinese authorities immediately attacked 125 % of US products.
This reaction means a significant escalation that strengthens the uncertainty in the global financial markets. So Beijing intends to prove his determination not to bend under US pressure.
Despite slight relaxation on the American side, with temporary suspension of consumer electronics prices, Beijing remains skeptical and considers this decision to be a shy American attempt to remedy its errors. According to China, this policy deeply damages the balance of international trade and directly threatens global economic stability.
American consumers, the first victims of this clearing
While Washington is optimistic about the effectiveness of its price policy, China draws attention to the direct consequences for American citizens.
According to Mao Ning, a spokesman for the Chinese Ministry of Foreign Affairs, customs tariffs not only penalize Chinese companies, but above all they store other burden on US companies that directly reflect it on consumers.
Customs prices do not bring the manufacturer back in the United States. Simply make another tax for American citizens.
This discourse, both intelligent and pragmatic, emphasizes the reality often covered with protectionist rhetoric: indeed they are the final consumers who pay the account.
Despite the enthusiastic statement of Trump’s administration on the alleged efficiency of his tariff strategy, no business agreement has yet been concluded for Beijing. Neutral negotiations seem to be neutral and worsen the market volatility. This diplomatic and economic dead end reveals a potentially devastating crisis not only for two economic giants, but also for the world’s economy.
The future remains uncertain in the face of these growing tension. The next few weeks will be essential to determine whether Washington and Beijing will find a compromise, or whether the world will have to deal with the economic crisis, the impacts of which could be harder than expected. In the face of all these uncertainties, gold is doing well and reaches new heights.
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Evariste, fascinated by Bitcoin since 2017, has not stopped documenting on this topic. If his first interest has fallen in trading, he is now actively trying to detain all the advances on cryptocurrencies. As an editor, he tries to permanently provide high quality work that reflects the condition of the sector as a whole.
Renunciation
The words and opinions expressed in this article are involved only by their author and should not be considered investment counseling. Do your own research before any investment decision.