Trade wars will backfire

[ImmediateReaction]

China said today "China is ready to fight till the end " it further said that would mean in a trade war or any type of war.

China can use strong words just like Trump. So when 2 huge superpowers use the same words does everyone lose. Trade wars don't help anyone. The American farmers will lose out massively.

https://www.bbc.co.uk/news/articles/c8x4vj8rj9wo

https://www.bbc.co.uk/news/articles/c5yx02nnnyvo

So Trump's usual way is shout about massive things eg huge tarrifs, then roll back so he gets his way. China can also shout.

Some panic. Smaller countries can only do so.much. Wealth and size can shout more.

The problem for China is that strategically the US is getting out of China, and the Biden administration also was putting up tarrifs against them and moving key industries away from them.
In 2024 13.4% key imports came from China to the US whereas imports in the other direction are negligable and so there is a huge imbalance in what they can do to retaliate.

Thanks.

I understand that American farmers export lots of soya to China.

"PUNISHING FARMERS
Additional levies imposed by China earlier on Tuesday comprised a 15% tariff on U.S. chicken, wheat, corn and cotton and an extra levy of 10% on U.S. soybeans, sorghum, pork, beef, aquatic products, fruits and vegetables and dairy imports, effective from March 10.
The suspension on the three soybean exporters on top of higher import tariffs will further restrict imports of the oilseed into China.
Beijing's concerted efforts in recent years to greatly reduce its dependence on U.S supplies has put it in a stronger position to target U.S farm goods with less impact to its food security and greater harm to U.S farmers compared to a 2018 trade war during Trump's first administration.
China has turned to South American producers, boosted agriculture cooperation with allies and raised domestic production through expanded planting and the use of technology."

https://www.reuters.com/world/trade-wars-erupt-trump-hits-canada-mexico-china-with-steep-tariffs-2025-03-04/

"RETALIATION STARTS
Canadian Prime Minister Justin Trudeau described the tariffs as "a very dumb thing to do" and hit back with 25% tariffs on C$30 billion ($20.7 billion) worth of U.S. imports, including orange juice, peanut butter, wine, spirits, beer, coffee, appliances and motorcycles."

So trade wars ramping up today