On Tuesday, April 3rd, the Trump administration announced a list of about 1,300 Chinese exports that it intended to impose a 25% tariff on. On Wednesday, April 4th, the Chinese Ministry of Commerce fired back with the threat of imposing tariffs on 106 US products that includes planes, cars, and soybeans. It has not been announced when these new tariffs will be put into order but many are scared of a looming full-blown trade war between the two biggest economies in the world. Some consequences of the announcement have appeared with the markets already taking a sharp dip. With none of the threats being put into place, Chinese officials have said that the time before the tariffs go into effect will be a, “time to negotiate and cooperate.” China said that the US moves, “violates China’s legitimate rights and interests under World Trade Organization rules and threatens China’s economic interest and security.” Stock market in both China and the US have dropped more than 2% due to this.
