China imposed 84% of American import prices on Wednesday while the trade war between the two largest economies in the world continued to degenerate.
This decision follows President Donald Trump’s radical rates against business partners.
The decreases on European stock markets accelerated after the announcement of Beijing, the Stoxx 600 index dropping 4.2%.
Trump on Tuesday wrote on Truthsocial that he was waiting for Beijing’s call.
“China also wants to conclude an agreement, but they don’t know how to start. We are waiting for their call,” wrote Trump.
The White House press secretary Karoline Leavitt later said in the day that if China called to conclude an agreement, Trump “will be incredibly graceful, but he will do what is best for the American people”.
Beijing said he did not go back into the chicken game. He said on Tuesday that he “would fight to the end”.
“To judge by its actions, the United States does not seem serious to have interviews at the moment,” said Lin Jian, spokesperson for the Chinese Ministry of Foreign Affairs.
“If the United States really wants to speak, it should allow people to see that it is ready to treat others with equality, respect and mutual benefits.”
Analysts are preparing for a long dead end between the two mega savings.
“In advance, we see a narrow path to the resolution for the rank of current price between the United States and China,” wrote Yeap Jun Rong, market strategist at IG.
“Even if the negotiations resume in the future, reaching a consensus can be difficult, which suggests that trade tensions could persist for an extended period,” he added.
businessinsider
