China warns against Trump's tariff tactics at BRICS summit
Chinese Foreign Minister Wang Yi has called for resistance against the "bully," referring specifically to U.S. President Donald Trump. The diplomat cautioned against yielding to the Republican's demands on tariffs. Bloomberg notes that China is seeking to position itself as a bastion of free trade.
Wang Yi, the head of China's Ministry of Foreign Affairs, warned at a BRICS group meeting on Monday that acquiescing to the tariffs imposed by Donald Trump's administration would only embolden the "bully," meaning the U.S. President.
"The United States, which has long reaped substantial benefits from free trade, is now resorting to using tariffs as a bargaining chip to demand exorbitant prices from all countries," stated the head of China's Ministry of Foreign Affairs.
At a meeting of senior diplomats in Brazil, he observed that if someone opts to remain silent, compromise, and hide, it will merely fuel the "tyrant" to continue testing his limits, Bloomberg reports.
China as a bastion of a free market
Bloomberg highlights that China is striving to present itself as a "bastion of free trade" on the global stage. According to experts, the Chinese are attempting to demonstrate strength and resolve, rather than show weakness against the U.S. This does not preclude Beijing from seeking a deal with Washington to curb or eliminate tariffs.
The Chinese government is considering suspending the 125% tariff on certain American goods imported from the U.S. Concurrently, on Monday, Chinese officials announced they will enhance support for exporters affected by American tariffs, offering measures such as loans for companies. Additionally, Beijing has pledged to lower interest rates.
Since April, American tariffs on goods from China have increased to 145%, leading to a 60% decline in goods transport. Consequently, by mid-May, many companies, including Walmart and Target, may face product shortages and price hikes.
Sean Stein from the U.S.-China Business Council recently told NBC News that goods are expected to start running out within a few weeks. This might lead to empty shelves resembling the early days of the COVID-19 pandemic when supply chains were disrupted and new solutions had yet to be implemented.
The sight of empty ports on the U.S. West Coast stirs concerns regarding Donald Trump's trade war, reports "Fortune" magazine.
