West and East are outbidding each other with mutual tariff increases: After the USA raised the rate to 145%, China is now following suit with 125%.
Beijing says that the level of tariffs no longer plays a role. At the same time, China is trying to maintain good trade relations with Europe. The dispute is having a direct impact on container shipping.
China is unimpressed by the new US advances in the trade war. From Saturday, tariffs of 125% will be imposed on imported US goods – previously it was 84%. Shortly beforehand, the Trump administration had increased the tariffs on Chinese goods; initially to 125%, which were then increased by the 20% tariffs already imposed – these had not initially been included.
For China, the reciprocal measures have now reached a level that makes trade impossible. Further tariffs on Chinese exports will be ignored, according to Beijing, as there is already no market acceptance for US imports in China.
Jinping: tariff policy is “harassment”
As a result of the tensions with the USA, the East is now looking for good relations with trading partners – above all in Europe. President Xi Jinping said at a meeting with the Spanish head of government Pedro Sánchez that China and the EU should protect the common trade area and defend themselves against “harassment”.
The escalating trade war had previously affected the global stock markets. The tariffs are also already having an impact on shipping. Container volumes from China to the USA, for example, have fallen sharply, said Peter Sand, chief analyst at the Norwegian tariff platform Xeneta. “Shipping companies have started to pull out of China in particular, as bookings have fallen sharply,” said Sand. “The trade war has a clear impact: lower demand. Shipping companies will respond by canceling more sailings in the coming weeks and months.”
