Asian stock markets plummeted on Monday following a Wall Street meltdown after the US implemented tariff hikes and Beijing announced counter-tariffs. Japan’s Nikkei 225 index fell nearly 8% before settling at a 7.1% drop. However, China remains unfazed, believing it can protect its economy by lowering borrowing costs and reserve rules for lenders.
China’s Commerce Ministry declared a 34% tariff on all US goods in response to US tariffs on Chinese imports. The country aims to combat the tariff war by implementing measures such as lowering reserve requirements for banks and cutting policy rates. China plans to boost domestic consumption, stabilize markets, and assist industries impacted by tariffs.
People’s Daily stated that China will continue taking strong actions to protect its sovereignty and interests. The US tariffs are expected to significantly suppress bilateral trade, with more pressure on China’s economy. However, China may not be as severely impacted as the US, which heavily relies on Chinese imports for various goods.
The article questions the wisdom of Trump’s 34% tariff on China, highlighting the impact on US consumers and China’s reliance on US imports for essential items. While some goods may be easily replaced, others could create challenges for both countries. Overall, the article suggests that China and the US have significant experience in trade wars and that both countries will continue to face challenges in the current situation.
Source
Note: The image is for illustrative purposes only and is not the original image of the presented article.
