Beijing has decided. After warning of countermeasures and pushing Washington to engage in talks and “meet China halfway” for days, it has made the decision to strike back, or at the very least, threaten to do so with its own tariffs.
China announced that starting on February 10, it would impose a 10% duty on crude oil, agricultural equipment, and large-engine automobile imports from the United States, as well as a 15% tax on coal and liquefied natural gas products. The date is important. It means there is still time for the world’s two largest economies to step back from the brink of a trade war. The two leaders have scheduled a call later this week, according to the White House, and there are signs, despite today’s announcement, that China is in listening mode and is keeping the door open for talks.
First off, Donald Trump’s 10% tax on all Chinese goods going to the US is far more extensive than China’s countermeasures.
Although America is the world’s largest supplier of liquid natural gas, just around 2.3% of its exports come from China, and the majority of its automobile imports come from Europe and Japan.
Beijing may be using this deliberate and selective targeting of goods as a prelude to negotiations in order to obtain some leverage and bargaining power.
The positive beginning to the US-China relationship since Trump’s election may give Chinese officials hope.
Days before his inaugural ceremony, the US president claimed to have had a “very good” phone conversation with President Xi, which was attended by the highest-ranking Chinese official ever sent to such an occasion. Additionally, he has expressed his desire to collaborate with Xi in order to end Russia’s conflict in Ukraine.
Given that he is working to strengthen his own faltering economy, President Xi may not want to start a war with Trump just yet.
Both leaders are accustomed to this as well, even though they may not be eager to revisit the past. During Trump’s past administration, US-China relations experienced a honeymoon period before deteriorating.
To deal or not to deal
Additionally, negotiating a deal with China would be significantly more challenging for Trump than with Mexico or Canada, and a lot will depend on his demands of Beijing.
China is Washington’s biggest economic adversary, and the Trump administration has sought to cut off the nation from important supply networks.
Xi may feel he can leave if Trump demands too much, and there will be boundaries to how much he will take.
Compared to then, the US president is dealing with a far more self-assured China. Beijing is now the top trading partner for over 120 nations as a result of its global expansion.
It has also made a consistent effort to increase local output and lessen the role of trade in its economy over the last 20 years. According to the Council on Foreign Relations, imports and exports now make up about 37% of China’s GDP, down from over 60% in the early 2000s.
Beijing may believe it can withstand the impact for the time being, but the 10% tax will hurt.
There will be concern that either President Trump is sincere about raising that number to the 60% he promised during his campaign or that he will keep using the threat of tariffs as a diplomatic ploy to keep Xi in check.
Beijing will want to be prepared if that occurs, which entails having a well-defined plan in case things go out of hand.
Learning from the past
The leaders’ previous agreement did not work out.
Beginning in 2018, the two nations imposed tit-for-tat tariffs on commodities valued at hundreds of billions of dollars.
After more than two years, China finally consented to spend an additional $200 billion (£161 billion) annually on US goods in 2020.
The Covid epidemic ruined Washington’s hopes that the pact would reduce the massive trade gap between the US and China, which, according to Chinese customs data, is currently $361 billion.
China faces significant obstacles as well since it anticipates every agreement.
Beijing continues to sell about four times as many commodities to the US as it purchases, and it ran out of things to target during Trump’s first term in office.
According to analysts, China is currently considering more options for retaliation than tariffs in the event that the trade conflict intensifies.
Time is running out. This is not yet a full-scale trade war. Companies from all over the world will be keeping an eye on if the two leaders can come to an agreement later this week.
What is known about the school shooter in Sweden?
The perpetrator of the greatest mass shooting in Swedish history paced the hallways of the Risbergska adult education center on Tuesday afternoon.
Outside the classroom of 35-year-old nursing student Hellen Werme, his footsteps were audible.
“We became alarmed when we heard three bullets in quick succession. ‘Shut the doors, lock them, and hide,’ my teacher said,” she told Sweden’s TV4 News.
Eleven people were killed in the incident in the Swedish city of Orebro in the center, and police have not disclosed many details about the alleged murderer.
However, the local media portrays him as a loner who was a law-abiding gun owner.
This is what we currently know.
What were the suspect’s motives?
Police don’t know who the culprit is, and they think he did it alone.
According to officers, he acted “without any ideological motive” and had no gang affiliations.
Additionally, they don’t think terrorism was the driving force behind the incident.
“The situation is evolving. Roberto Eid Forest, the local police chief, stated that while the information we previously provided is still accurate, it could alter in the future.
He claimed that officers were “shot at” when they arrived on the site, but no one was hurt.
The suspect was later discovered dead by police, and according to Mr. Forest, it seemed he had taken his own life.
What else do we know about the suspect?
A relative of the suspect claims in an interview with the tabloid Aftonbladet that he was unemployed and had not communicated with relatives in a long time.
“He was unique but energetic as a child. He performed well at school. But he had a difficult few years.
According to a different cousin, the man was a “recluse” and might have struggled with mental health issues. He reportedly changed his last name eight years ago.
“He used to spend a lot of time with a friend, but that is no longer the case. He desires independence. He doesn’t appear to be really fond of people.
According to Swedish Radio, hours after the incident, highly armed officers used drones and a ladder truck to storm an apartment in Orebro that was thought to be registered to the suspect.
The presenter discovered that he had reported no income for the previous few years and had no convictions to his name.