China has announced the imposition of 5 percent tariff on all products imported from the United States to its home country as a counter -action announced by Donald Trump. This declaration has taken the world a step further towards the full trade war. Following the announcement of China on Friday, the fall of the stock market around the world has accelerated.
According to the British media Financial Times report, the loss of the stock market around the world has increased after China's announcement. The future index of the US stock market S&P-1 has decreased by 5.7 percent and European 'StOXX-600' stock markets have decreased by 5.7 percent.
The Chinese Ministry of Commerce said on Friday that the tariff, which is equivalent to the latest tariff imposed on Beijing from Trump, will be imposed on all imported goods from the United States; Which will be effective from April 7. The announcement came a day after America's counter -tariff effect.
Last week, Trump announced the imposition of 5 percent tariff on Chinese products. As a result, the total tariff on Chinese products entered the United States will be more than 5 percent. Beijing has previously considered the tariff of this level as the 'worst situation', but the new US tariff has condemned the “general unilateral move”.
The country also said that the US tariff imposed last week is not compatible with international trade and will cause severe damage to China's legitimate rights and interests. US agricultural exports as a result of this latest step in Beijing; In particular, soybeans, wheat and maize will be the most affected. China is also an important importer of pharmaceuticals from the United States, crude oil, petroleum gas and liquefied natural gas.
This trade war has come to the Chinese President Sea Chin Ping at a touching time when he is relying on export as the second largest economy in the world to cope with the downturn and inflation in the housing sector.
Meanwhile, the steps to impose Trump's tariff on various trade partners around the world have upset the stock market. About two and a half trillion dollars from the Wall Street stock market on Thursday, and the bid that was earned after Dollar Trump was elected.
The Financial Time Stock Exchange-9 percent and Germany's DAX decreased by 5.7 percent as the price continued on Friday. Investors are leaning towards the US Treasury Bond. As a result, the dividends dropped below 5.7 percent at the beginning of the day, which is lowest after the start of October.
Beijing is one of the main goals of Trump's counter -tariff. Earlier this year, he imposed a separate tariff on China. Andrew Gilhom, the head of China's analysis of the Control Risk of the market analyst, said that Beijing could suffer major suicide loss if China's trade surplus and the tariff imposed on US tariffs.
