Trump threatens tariffs: China warns of escalation in trade dispute!

Trump threatens tariffs: China warns of escalation in trade dispute!

Tensions between the US and China continue to rise, with both political and economic implications. Loud Newsbit Investors have high hopes for more stability in international trade, while China warns the USA about the possible restoration of old import tariffs. These political developments are particularly significant as the deadline for a new trade agreement ends on August 12th. Donald Trump has threatened to impose tariffs of over 100% on Chinese goods if an agreement is not reached.

The targeted high tariffs could not only place a heavy burden on trade between the two world powers, but also have a negative impact on financial markets, including the crypto market. China sees Trump's threats as "harassment" and instead calls for dialogue and constructive cooperation. Beijing is also warning other countries that conclude trade agreements with the USA that could harm China.

Negative economic impact

The economic effects of the customs conflict are already being felt. The Port of Los Angeles, one of the largest container ports in the world, has seen a drastic decline in cargo volumes. U.S. companies are canceling orders from China, causing a drop of up to 40 percent at the ports of Los Angeles and Long Beach. This could have long-term economic consequences and put affected companies in a difficult position.

Shipping companies are responding to the drop in goods traffic by using smaller ships in order to continue to offer the affected routes. In these large ports, which handle around ten million 20-foot containers every year, the customs conflict could cost thousands of jobs.

Trade agreements and internal disunity

In addition to the tensions with China, Trump is also threatening the European Union with import tariffs of 50 to 70% if a trade deal is not reached. The EU deadline was recently pushed back from the original July 9th to August 1st. While EU President Ursula von der Leyen is open to a trade agreement, there is disagreement within the EU: Germany is calling for a quick agreement, while France is demanding stricter requirements.

US Treasury Secretary Scott Bessent reports positive negotiations with Europe and is optimistic that agreements will be reached soon. However, it remains to be seen whether political differences within the EU and tensions with China will make an agreement more difficult.