Tariff Battle Intensifies as WTO Warns of Global Economic Impact

  • China raises tariffs on US imports to 125%
  • U.S. duties on goods from China increased to 125%
  • Tariff increase takes effect Saturday
  • Trade war between U.S. and China could decline merchandise trade by up to 80%
  • Global real GDP may reduce nearly 7% due to tension

China has increased tariffs on U.S. imports to 125%, following the U.S.’s decision to raise duties on goods from China to the same level. The Ministry of Finance stated that these actions violate trade rules and warned it will no longer be marketable in China if the tariff level rises further. The World Trade Organization predicts a significant decline in merchandise trade between the two countries, potentially causing a 7% reduction in global real GDP.

Factuality Level: 10
Factuality Justification: The article provides accurate information about the escalating tariffs between China and the U.S., citing official statements from both countries’ Ministries of Finance and projections from the World Trade Organization.
Noise Level: 3
Noise Justification: The article provides relevant information about the ongoing trade dispute between China and the U.S., but it does not offer any new insights or analysis beyond simply reporting the latest developments.
Financial Relevance: Yes
Financial Markets Impacted: Yes
Financial Rating Justification: The article discusses the escalating trade war between China and the U.S., with both countries increasing tariffs on each other’s imports. This has a direct impact on financial markets, as it affects global trade and could lead to a decline in merchandise trade between the two countries. It also mentions the potential long-term reduction in global real gross domestic product due to this trade war.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the article, and it does not discuss any event that happened in the last 48 hours.

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