China warns of tough retaliation over latest US tariff hike
China firmly opposes the additional 34% tariffs imposed by the US on imports from China. Beijing is urging Americans to immediately retract them, threatening retaliation in response.
What do you need to know?
- New US Tariffs: President Donald Trump announced additional tariffs on imports from China, raising them by 34%. This brings the total tariff burden to 54%.
- China's Reaction: The Chinese Ministry of Commerce has expressed strong opposition and called for the immediate withdrawal of the tariffs, warning of potential retaliation.
- Potential Effects: Experts predict that these increased tariffs may drive China to diversify its trade relationships with other markets.
Since April 5, the US has been imposing tariffs on imports from all countries. In the case of China, tariffs were increased from 20% to 54%.
What are the positions of China and the US?
The Chinese Ministry of Commerce expressed "firm" opposition on Thursday to Donald Trump's decision. Beijing has called for the "immediate" withdrawal of these tariffs, threatening retaliatory measures to protect its interests. The Ministry stressed that raising tariffs will not resolve the United States' issues and will only harm global economic growth.
"The United States has drawn the so-called ‘reciprocal tariffs’ based on subjective and unilateral assessments, which is inconsistent with international trade rules and seriously damages the legitimate rights and interests of relevant parties" - assessed the Ministry of Commerce.
Does a trade war have a future?
According to the Chinese Ministry of Commerce, "there are no winners in trade wars, and there is no way out for protectionism." However, the authorities in Beijing did not specify the steps they would take in response to Washington's decision. Previously, after the US announced the initial tariffs on Chinese imports, Beijing responded with actions including 15% tariffs on imports of coal and liquefied natural gas and 10% tariffs on oil imports.
Experts suggest that the increase in tariffs on imports from China could prompt Beijing to strengthen trade ties with alternative markets such as Europe, Southeast Asia, and Africa. This shift may impact global supply chains and economic stability.
