Trade War
International News: US President Donald Trump has created a stir in the whole world with his tariff (import duty) decisions. This affected the economy of many countries and the fear of recession increased. After this, Trump has banned tariffs for 90 days (till July 9, 2025), citing talks with 50 countries. But he kept China out of this relief. America had earlier imposed a 34% tariff on China, which was increased to 104% and now Trump has further increased it to 145%. This means that now a total of 145% tax will be imposed on goods coming from China to America. This will hit China's economy, but America may also have to bear the impact of inflation.
China is a big exporting country in the world and America is an important market for it. Now due to such high tariffs, the products of Chinese companies will become expensive, which may lead to a decline in their sales. This will affect their income and production may also decrease.
Now everyone's eyes are on whether China will respond to this decision? Will it also increase tariffs on goods coming from America? Or will both countries once again sit at the negotiating table?
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