China announces 34% retaliatory tariffs on US imports

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China has announced its duties by 34 percent on all American imports in revenge on Donald Trump’s tariff, which prompted the world closer to a full trade war as the US president has pledged that he would never retreat.

Global stock markets extended their losses on Friday after Beijing’s statement, as S&P 500 decreased by 2.4 percent in the Stoxx 600 percent in Europe.

“China has played wrongly, I felt panic – the only thing they could not do!” Trump has actually posted on his social network before Wall Street started trading today.

The new Chinese tariff is identical to the latest increase in the duties of the US President in Beijing and comes to the summit of a previous round for this year.

The country’s Ministry of Commerce said on Friday that it will be imposed on all goods imported from the United States as of April 10, a day after the “mutual” fees for America.

Beijing’s move was accompanied by a wide range of other measures, including restrictions imposed on rare land exports and the investigation of a subsidiary of China in Dubnt, the American chemical giant.

Trump said he will continue his policy, which will reach Washington’s tariff to more than a century, despite the fall in Wall Street and other stock exchanges worldwide.

“For many investors coming to the United States and investing huge amounts of money, my policies will never change,” he published. “This is a great time to get rich, richer than ever!”

The US President’s announcement of the 34 percent tariff for Chinese imports of the United States will become the average customs tariff for Chinese goods to 76 percent, according to the analysis of the Peterson Institute for International Economy.

This number is much higher than 60 percent of Trump that Trump threatened during the campaign last year.

Beijing, who was previously considered such a level of definitions such as the worst case, denounced the new American duties as a “unilateral step”.

He added that the American definition round for this week “is not compatible with international trade rules and is seriously destroyed by legitimate rights and the interests of China.”

Lea Fahi, an economist in China in Capital Economics, said in a research note that the new retaliation of 34 percent of Beijing pushed the average country’s tariff on US imports to about 50 percent, and a “great escalation”.

The last measures are likely to have the greatest impact on American agricultural exports, including soybeans, wheat and corn. China is also an important importer of pharmaceutical preparations, raw oil, petroleum gas and liquefied natural gas from the United States.

The trade war comes in a sensitive moment for Chinese President Xi Jinping, who was based on exports to direct the second largest economy in the world through stagnation in the real estate sector.

Alicia Garcia Herro, the Senior Economist in Asia and the Pacific in Natxis, suggested that the last round of Beijing of definitions indicates that she was trying to put herself to be in the high -level negotiation line with Washington.

Trump has moved to impose a very declining tariff on trade partners around the world, and may disturb markets. On Thursday, about 2.5 trillion dollars of market value were erased from Wall Street shares, and all post -election gains were eliminated in dollars.

As the fall continued on Friday, FTSE fell 3.5 percent and DAX lost 3.8 percent.

Investors have invaded US Treasury bonds, which prompted the return for 10 years to a decrease of 0.13 degrees Celsius per day to 3.93 percent.

Beijing is among the largest “mutual” targets that Trump, who has already imposed a 20 percent separate duty on Chinese goods earlier this year.

Andrew Gilholm, head of China’s analysis of the risk of controlling consulting, said that Beijing may suffer from “great damage to themselves” from the customs tariff in the United States, given the surplus of trade in China with the United States and the definitions it already offered.

China has announced the export ban on seven rare lands on Friday, while American technology companies, including Skydio and BRINC drones, have been added to the list of “unreliable entity”, which prevents Chinese suppliers from selling ingredients to them.