China and Google in Trump’s Tariff War

Donald Trump has initiated his announced tariff war, which has been labeled by Polish Prime Minister and President of the European Council, Donald Tusk, as “the most stupid trade conflict in history.” This measure benefits no one, and both consumers and businesses will suffer its consequences.

A Strategy of Trade Pressure

Tariffs have been one of Trump’s preferred economic tools, used as an incentive to move production to the U.S. or as a means of pressure in geopolitical matters. The recent increase in tariffs on foreign chip manufacturing could raise global technology prices, affecting both consumer and professional sectors, leading to reduced sales and profit margins for companies.

China Responds with Retaliatory Measures

After imposing trade restrictions on Mexico and Canada, Trump has shifted his policy toward China, arguing the “failure of Beijing to curb the flow of illegal drugs.” In response, the Chinese government has imposed a 15% tariff on U.S. exports of coal and liquefied natural gas, along with a 10% tariff on products such as oil, agricultural machinery, and high-end cars. It has also added companies like PVH Corp and the genetic sequencing firm Illumina to its list of restricted entities and implemented controls on the export of tungsten, a strategic material.

Google Under China’s Scrutiny

Another of China’s retaliatory measures has been the launch of an antitrust investigation against Google. Although its search services have been blocked in the country since 2010, the company continues to operate in the advertising sector. The investigation carries significant symbolic weight and could serve as a warning to other U.S. tech companies, especially in a context where the Chinese market has impacted iPhone sales and the situation of TikTok in the U.S. remains uncertain.

China has declared that the tariff war “severely violates the rules of the World Trade Organization” and that, far from solving U.S. internal issues, it harms bilateral economic cooperation.

Also Against Europe?

European leaders, gathered at an informal summit, have expressed concern over a potential trade conflict with the U.S. Kaja Kallas, the EU’s high representative for foreign affairs, warned that “there are no winners in trade wars” and that if the conflict escalates, “China will be the one laughing on the other side.”

German Chancellor Olaf Scholz stated that Europe can respond with its own tariff measures, while French President Emmanuel Macron was more emphatic in asserting that “if Europe is attacked on the trade front, it must stand up for itself and react.”

With rising tensions, uncertainty about the future of global trade continues to grow.

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