Tariffs newest: China hits again at Trump with new tariff – as markets plunge | Cash Information

“It has simply obtained worse however it’s additionally obtained worse inside comparatively predictable parameters,” Asia correspondent Helen-Ann Smith says after China raised retaliatory tariffs on US items.

That is as a result of each time Trump has raised tariffs, China has responded by matching the brand new tariff stage – this time at 125%.

“That is what we obtained from Trump a few days in the past. That is what we’ve got from China now. So it is following this sample.”

Probably the most necessary issues to return out of the assertion from Beijing, Helen-Ann says, is the Chinese language calling the state of affairs a “numbers recreation” and that elevating tariffs at this stage does not actually imply something in the actual world.

“And that is true actually, as a result of as soon as tariffs have gotten over 60% or 70% it mainly renders commerce between the 2 international locations not possible.

“So whether or not it is 100%, 150%, 200%, even 100% it does not actually make a lot distinction. Commerce has basically been obliterated anyway.”

The query is what occurs subsequent. There are two choices, she says: both an ongoing “stalemate” the place these international locations aren’t buying and selling with one another anymore or Trump may pursue political or different measures in opposition to China, which might provoke a response.