US President Trump says he could impose extra 25% tariff on China over Russia oil buys —Reuters

Source Fxstreet

US President Donald Trump said that he could impose further tariffs on China similar to the 25% levies announced earlier on India over its purchases of Russian oil, depending on what happens, Reuters reported on Wednesday. 

Last week, US Treasury Secretary Scott Bessent warned China that it could also face fresh tariffs if it continued buying Russian oil.

Market reaction

At the time of writing, the AUD/USD pair is trading 0.03% higher on the day to trade at 0.6505.

Tariffs FAQs

Tariffs are customs duties levied on certain merchandise imports or a category of products. Tariffs are designed to help local producers and manufacturers be more competitive in the market by providing a price advantage over similar goods that can be imported. Tariffs are widely used as tools of protectionism, along with trade barriers and import quotas.

Although tariffs and taxes both generate government revenue to fund public goods and services, they have several distinctions. Tariffs are prepaid at the port of entry, while taxes are paid at the time of purchase. Taxes are imposed on individual taxpayers and businesses, while tariffs are paid by importers.

There are two schools of thought among economists regarding the usage of tariffs. While some argue that tariffs are necessary to protect domestic industries and address trade imbalances, others see them as a harmful tool that could potentially drive prices higher over the long term and lead to a damaging trade war by encouraging tit-for-tat tariffs.

During the run-up to the presidential election in November 2024, Donald Trump made it clear that he intends to use tariffs to support the US economy and American producers. In 2024, Mexico, China and Canada accounted for 42% of total US imports. In this period, Mexico stood out as the top exporter with $466.6 billion, according to the US Census Bureau. Hence, Trump wants to focus on these three nations when imposing tariffs. He also plans to use the revenue generated through tariffs to lower personal income taxes.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Gold price remains close to $3,400/two-week top as trade tensions offset modest USD bounceGold price (XAU/USD) retreats from over a two-week high, around the $3,409-3,410 area during the Asian session as traders opt to take some profits off the table heading into the weekend.
Author  FXStreet
Aug 08, Fri
Gold price (XAU/USD) retreats from over a two-week high, around the $3,409-3,410 area during the Asian session as traders opt to take some profits off the table heading into the weekend.
placeholder
Bitcoin Bull Run at Risk as Whales Sell and Retail Buys In LateThe tug of war between Bitcoin bulls and bears since the asset reached its all-time high of $122,054 on July 14 has kept prices largely rangebound. 
Author  Beincrypto
Aug 08, Fri
The tug of war between Bitcoin bulls and bears since the asset reached its all-time high of $122,054 on July 14 has kept prices largely rangebound. 
placeholder
Gold Price Forecast: XAU/USD remains capped under $3,400 ahead of US inflation dataThe Gold price (XAU/USD) attracts some sellers to near $3,390 during the early Asian session on Monday.
Author  FXStreet
1 hour ago
The Gold price (XAU/USD) attracts some sellers to near $3,390 during the early Asian session on Monday.
placeholder
EUR/USD holds gains around 1.1650 due to cautious tone surrounding ECB outlookEUR/USD edges higher after registering losses in the previous session, trading around 1.1650 during the Asian hours on Monday.
Author  FXStreet
1 hour ago
EUR/USD edges higher after registering losses in the previous session, trading around 1.1650 during the Asian hours on Monday.
placeholder
Ethereum Surges Past $4,300 as Markets Await Pivotal CPI DataOver the weekend, Fed Vice Chair Michelle Bowman’s unexpected remarks fueled Ethereum’s surprise rise.
Author  Beincrypto
53 mins ago
Over the weekend, Fed Vice Chair Michelle Bowman’s unexpected remarks fueled Ethereum’s surprise rise.
Related Instrument
goTop
quote