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New Chapter on trade tensions between China and the United States

New Chapter on trade tensions between China and the United States

May 21, 2019

The trade war between the two main economies of the world intensified after the increase, on the part of EE. UU., of the tariffs of 200,000 million dollars’ worth of Chinese goods. The response from China was an increase in tariffs of up to 25% for 5,140 EE. UU. products.

Foto: La Nación

Amid mounting fears about trade tensions between the United States and China and the increase in tariffs, President Donald Trump said that companies could easily avoid the additional costs of imports by producing goods in the United States.

The American leader has accused China of not fulfilling its commitments in the trade negotiations that Washington and Beijing have been holding for months and has ordered new disciplinary tariffs, which went into effect on Friday, May 10.

While the spokesman of the Ministry of Commerce, Gao Feng, affirmed the following:

"China has kept its promises and that has not changed."

Economists around the world and multilateral organizations such as the International Monetary Fund (IMF) had warned for months that an extensive trade war between the two countries would have negative consequences on the global economy.

But, on the other hand, tariff pressures between the two largest economic powers in the world have begun to ease. China agreed today, Tuesday, May 14, that it will maintain binational dialogues to end commercial hostilities.

Mexico has benefited, the Mexican peso started the second session of the week with a slight recovery against the dollar, the exchange rate is at a level of 19.1450 units, with a variation of 5.55 cents or 0.28% against yesterday’s close, with data from the Bank of Mexico (Banxico) and has generated a window of opportunity for exports to its northern neighbor.

Prepared by CAINTRA, with information from Aristegui Noticias, Milenio, El Economista, NYTimes, El País, and el Universal.

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