Market Forces Confront Political Will

China Says Market Has Spoken After Trump Tariffs Spark Stocks Rout

China's Ministry of Commerce said on Monday that the market has spoken after US President Donald Trump's decision to impose tariffs on Chinese goods sparked a global stocks rout.

The ministry said that China will not engage in a trade war with the US, but will take necessary measures to protect its interests. The statement came after US stocks plummeted by as much as 2.5% in the wake of Trump's announcement on Friday.

China has long been wary of the US's increasing protectionism and has been pushing back against Trump's trade policies. The country has already imposed tariffs on US goods, and the latest move is seen as a response to the US's decision to impose duties on Chinese goods.

The tariffs, which are set to take effect on July 6, will apply to $34 billion worth of Chinese goods, including electronics, machinery and textiles. The US has also threatened to impose tariffs on an additional $416 billion worth of Chinese goods.

The move has sparked concerns about a global trade war, with investors and economists warning of the potential impact on global trade and economic growth.

The US has long been seeking to address its trade deficit with China, which has been growing in recent years. The tariffs are seen as a way to level the playing field and encourage China to make changes to its trade practices.

However, the move has also been criticized by some as protectionist and potentially damaging to global trade. The European Union, Japan and other countries have also expressed concerns about the impact of the tariffs on global trade.

The US and China have been engaged in a trade war for several years, with both sides imposing tariffs on each other's goods. The situation has been escalating in recent months, with the US and China imposing tariffs on each other's goods.