Key Takeaways:
- A court has struck down former President Trump’s tariffs on China, sparking reaction worldwide.
- China says no one wins in a trade war and calls protectionism harmful.
- Experts warn the US-China trade war creates global instability.
- Both countries’ economies depend heavily on each other.
- China is keeping its next moves unclear amid uncertainty.
US-China Trade War: What’s Next After Tariffs Are Overturned?
A major court ruling has overturned tariffs imposed by former President Donald Trump on China, and the world is closely watching how both countries will respond. CNN correspondent Marc Stewart, reporting from Beijing, says China’s reaction stands out for one key reason: its consistent message.
China’s Response: Same Message, No Clarity on Future Plans
When the tariffs were first put in place, China made it clear that it opposes protectionism and believes no one benefits from a trade war. Now, with the court’s decision, Beijing is repeating the same message. Stewart says, “This is the exact phrasing we heard at the beginning of this trade dispute. China is being very focused and not giving any clues about its next steps.”
The Chinese government has officially stated, “There are no winners in a trade or tariff war. Protectionism is harmful and goes against free will.” This strong statement highlights Beijing’s belief that trade wars only hurt economies and slow global growth.
Why This Matters: US-China Trade War’s Global Impact
The trade war between the US and China, the world’s two largest economies, has caused instability worldwide. Stewart explains, “When the world’s largest economy is in a trade war with the second-largest, it’s a bad look and creates uncertainty for everyone.”
Despite this, Stewart points out that the two economies are deeply connected. “Small businesses in both China and the US rely on each other. They depend on each other for goods, supplies, and customers.”
What’s Next? Uncertainty in Asia and Beyond
Stewart notes that Asia, a major manufacturing hub, especially for cars, has seen positive market reactions to the court’s ruling. “Markets are closing in the green, with strong gains across the board,” he says. This suggests that investors are cautiously optimistic about the situation.
However, the future remains unclear. Stewart says, “Government officials in Beijing are anxious about how the White House will respond to this ruling.” The next moves by both countries will shape the global economy for years to come.
What’s at Stake? Long-Term Trade Deal or More Conflict
The big question is whether the US and China will work toward a broader, long-term trade agreement. Stewart says, “Are they serious about finding a stronger, more stable deal? That’s what the world is waiting to see.”
For now, China is staying quiet about its plans. Stewart adds, “It’s not clear what China is thinking about its next move, especially as this news is being received across Asia.”
As the situation unfolds, one thing is certain: the relationship between the US and China will have a huge impact on global trade, businesses, and economies. Stay tuned for updates as this story continues to develop.