China plans to respond to the tariffs imposed by the Trump administration by focusing on restoring the «Phase One» trade agreement signed in 2020. This step includes a commitment not to devalue the yuan, increased investment in the United States, and reduced exports of fentanyl precursors. Last week, Trump imposed 25% tariffs on Mexican and a number of Canadian goods, as well as 10% duties on products from China, which caused a resonance in global markets, including cryptocurrencies. Beijing condemned these measures, rejected the accusations on fentanyl, but expressed its willingness to negotiate to prevent an escalation of the conflict. The «Phase One» agreement ended a nearly two-year trade war by committing China to increase purchases of U.S. goods by $200 billion over two years. However, due to the COVID-19 pandemic, Beijing has been unable to achieve these goals. In January, the Trump administration commissioned an assessment of the implementation of the agreement. Meanwhile, Canada retaliated by imposing 25% tariffs on U.S. goods worth $155 billion ($105.17 billion), increasing trade tensions.
