Description: Chinese government officials have confirmed their intent to impose up to 15% tariffs on coal and liquified natural gas products and 10% tariffs on crude oil and agricultural products and services on the US. The imposition came as a response to Trump’s tariffs on China and the two largest economies in the world are on the brink of a long-lasting trade war. China could initially sustain the blow of 10% on all Chinese products on the US market but could potentially risk of losing any kind of leverage going forward as their imposition wouldn’t do substantial damage to US global economic efforts. Presidents Xi and Trump have apparently agreed to meet in order to discuss further steps.
Impact: The announced tariffs on several countries come as a result of the aggressive and assertive foreign policy imposed by the Trump administration. He would continue to reposition the US on the global stage as the usage of economic and geopolitical pressure could be used as a bargaining tool for expanding US influence over more critical geopolitical areas such as Ukraine and Israel. China would seek some kind of a short to mid – term solution while it aggregates and adapts their economic policies, while the US would seek to leverage and impose their demands if and whether Trump is to withdraw from the extended imposition on tariffs which also included Mexico and Canada.