Trade Tensions Rise as China Retaliates Against US Tariffs

China has retaliated against President Trump's tariffs by imposing an additional 15% tax on American farm products. This escalation in trade tensions has unsettled US markets. Economists warn these tariffs could raise consumer prices and harm the US economy, while posing challenges for American farmers.

In a latest salvo in ongoing trade tensions, China levied an additional 15% tax on key American agricultural products including chicken, pork, soybeans, and beef. This move follows President Donald Trump's decision to increase tariffs on Chinese imports to 20%.

The escalating trade warfare rattled US markets on Monday as investors moved their funds amid fears of economic damage. The Commerce Ministry of China had forewarned that goods already en route would be exempt until April 12.

While the tariffs aim to safeguard US industries and financially benefit the Treasury, experts caution they could inflate consumer prices and impede economic efficiency. Meanwhile, the farmers could be caught in the crossfire, facing significant challenges amidst the complex geopolitical landscape.

(With inputs from agencies.)