Beijing Responds with Their Own Tariffs. US-China Trade

Kaya Johnson — August 15, 2018

Hours after the White House announced they will put tariffs on about 1,300 Chinese products, Beijing responded in the same way, saying they will also adopt 25% tariffs for trading on a number of 106 US products, including orange juice, soybeans and aircraft. This decision had a strong impact on Wall Street, which started 1.75% lower. What people thought it was a trade war was labeled by analysts as a “trade dance,” as the stock market closed 1% higher.

Beijing responds with tariffs


The Effect on The International Market

While S&P rose 1% and Nasdaq closed 1.4% higher, the Europe stock markets fell, as the investors didn’t expect China to respond as fast as they did. Even though they closed a little bit lower, the European markets were shaken by what they thought it was a trade war between China and the USA. After officials from Beijing claimed the US tariffs that were proposed were “unilateralistic and protectionist”, Donald Trump took to Twitter to explain that there’s no trade war between the USA and China.

In his tweet, the American President said his country does not consider itself in a war of trading with China but he claimed a previous trade war was lost by people who represented the USA in the past. He also reminded people that the US have a trade deficit of $500 billion a year, from which $300 billion come from property theft.

A Year Full Of Tensions

This isn’t the first time the US applies taxes on China goods in 2018, as Donald Trump also announced import tariffs on steel and aluminum earlier this year. According to the Oval Office, their new policy comes as a reaction to the pressures applied by the Chinese government in the intellectual property sector, as they want the US firms to share their technology with the companies from China. Among the products on which the US applied tariffs, there are:

  • Communication satellite parts
  • Bakery ovens
  • Industrial machinery and semiconductors
  • Flat screen TVs
Beijing responds with tariffs2

Beijing responds with tariffs2


As a response, the Chinese government put taxes on a wide range of American products, such as:

  • US chemicals
  • Whiskey
  • Tobacco
  • Beef
  • Lubricants
  • Plastic products

A War from Which Nobody Wins

Although they claimed they don’t want a war trade with the US, the Chinese officials stated China will not accept intimidation and threats from anyone and they will respond accordingly. They also said there can be no winner after such a war and one that begins will not only harm itself but others as well” No tariffs will be put in practice immediately and, according to economists, there will be no major impact on the economy if they continue forward.

Beijing responds with tariffs3

Beijing responds with tariffs3


Last year, the two countries exchanged services and goods of about $700 billion and the value of every list of goods that falls into these new sets of tariffs is about $50 billion. According to analysts, China’s economy is now not so dependent on selling products and goods to other countries, so the US tariffs will not affect them that much. Affected by this decision, business groups from the USA expressed their concern and asked the two countries to take care of the issues and avoid a negative impact on the US economy.

Kaya Johnson is a professional sales accountant and blogger from Yorkshire. She is eager to share her thoughts with any interested reader. She can be contacted at:

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