Hey there! 🖐️ Did you hear the news about China and the U.S.? It’s like a big game of give-and-take! Let’s break it down together.
What’s Happening?
China has decided to add an extra 34% tax on all goods coming from the United States, starting from April 10. 📅 This means things made in the U.S. will be more expensive to buy in China.
Why Did This Happen?
Earlier, the U.S. put new taxes, called tariffs, on products they get from other countries, including China. So, China is responding with its own tariffs! It’s kind of like when one friend raises the price of trading cards, so the other friend does the same.
What’s a Tariff? 🤔
A tariff is a special tax that countries add to products they import from other countries. It can make those products more expensive, which might change what people buy.
Extra Measures
China is also limiting some exports of rare earths to the U.S. 🪨 These are special minerals used to make things like smartphones, computers, and even electric cars!
Impact on Stocks 📉
After China’s announcement, the U.S. stock market went down. The Dow Jones Industrial Average dropped more than 1,000 points! That’s a big deal in the world of business.
Other Actions
- China filed a lawsuit with the World Trade Organization (WTO). The WTO helps countries sort out trade problems.
- They added 11 U.S. companies to a list that restricts some of their activities in China.
- China is also looking into certain products from the U.S. and India to make sure trade is fair.
What Does This Mean?
This situation shows how countries work together and sometimes disagree on trade. It affects prices, businesses, and even the stuff we use every day!
Stay Curious! 🌟
International trade can be complicated, but it’s important to understand how countries interact. Who knows, maybe you’ll be a future business leader or diplomat!
Reference(s):
China hits back at U.S.'s new tariffs with 34% added tax, export curbs
cgtn.com
