China has just announced that it will increase tariffs of about $60 billion on Chinese products by June 1, according to the international news agency Bloomberg. About 2,493,000 items will have their rates raised to 25%, according to information from the Chinese Administration website.
The official announcement also speaks of increases that can vary from 10 to 25% and that products that are taxed at 5% will not change. The Finance Ministry said in a statement Monday that this was “a response to unilateralism and trade protectionism.”
“China expects the US to return to the right track of bilateral trade negotiations, working with China to find the country halfway to an agreement that is mutually beneficial, with respect, equality, and gains for both.”
Trump said China would be “playing with time” and warned Xi Jinping’s administration that it could offer a “much tougher deal” if it were re-elected in 2020.
The intensification of the commercial war already provokes reactions in the entire world financial market and the commodities react very aggressively to the latest information. On the Chicago Stock Exchange, around 9:25 am, soybean futures lost more than 12 points in the main maturities and the July / 19 contract already lost $8 per bushel, is priced at $7,96.
Commodity prices are the lowest in 10 years and mainly reflect high US inventories and slower demand from China at the moment, the world’s largest buyer.
“With soy prices at the lowest level in more than a decade, reflecting record US inventories, swine flu reducing demand for soybeans in China and a worsening US / Chinese trade war, buying interest remains weak,” he explains. The director of Cerealpar, Steve Cachia.
After the visit of Vice Premier Liu He to Washington, the Asian nation has already warned that it will retaliate against the latest Trump government moves. The Americans, after all, started a new round of tariffs, now about $300 billion worth of Chinese products.
Thus, an agreement between the two largest economies in the world seems increasingly distant. The good news, amid all this turmoil, is that while it conflicts with the US, China continues to buy more soybeans in South America, especially in Brazil, which has already motivated a good reaction of the prizes in the ports of parents.