Trump doubles Tariff on China
US President Donald Trump made good on his promise to react to a tariff response by China by doubling their effective tariff of 52% to 104%.
China had just applied a 34% tariff on US goods.
Not only are we unsure as to whether the tit-for-tat trade measures are finished, but the effects of this shock to the world trade system could tip either the US or China or indeed the world into a downward spiral. And this is how the Great Depression gathered speed after the Smoot-Hawley protectionist Tariff law put up a commercial wall around America supposedly to protect American jobs. It had the opposite effect, with a quarter of all Americans out of work soon after.
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China retaliates (again) Wednesday night with an 84% tariff – up from 34%
UPDATE
US retaliates overnight with a 125% tariff on China “effective immediately”