Dmitry Kuznetsov commented on China's response to US tariffs

In his opinion, China’s increase in tariffs to 125% is a response to the US trade aggression and a kind of call for dialog.

«Reaching an agreement is certainly in the interests of both countries, however, at the moment the United States and China are not showing readiness for serious negotiations and rather expect the initiative to come from the opposite side. Such a strategy could lead to losses for both sides in the near future, and someone will still have to make the first step," Dmitry Kuznetsov said.

The expert believes that a compromise is possible provided that both countries agree to approximately equal terms of access to each other’s markets. However, in his opinion, the US should present more substantiated trade claims. Dmitry Kuznetsov also emphasized that China may suffer more at the initial stage, as exports from China to the US exceed US exports to China.

«The development of the situation will depend on further events. If the current situation persists, China will suffer more at the first stage, since the volume of supplies from China to the United States significantly exceeds the volume of US exports to China. As a rule, it is easier to buy something than to sell it, and it will not be easy for China to replace such a large market as the American one," the expert explained.

Dmitry Kuznetsov added that if the duties for other countries remain at 10%, Chinese goods may start to enter the US through alternative channels, which will lead to higher prices for American consumers. At the same time, China will be able to replace US raw material supplies, which will make the losses of both sides comparable.

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