China on Wednesday raised tariffs to 84 per cent on American goods in response to US President Donald Trump’s 104 per cent levies on Chinese exports.
China—Washington’s top economic rival but also a major trading partner—will be hardest hit. Since Trump returned to the White House, tariffs have been imposed on its products. After Beijing refused to withdraw its reciprocal tariffs, Trump announced a whopping 104 per cent levy on the country on Wednesday midnight.
Earlier today, China called for “equal” dialogue with the US over Trump’s tariff measures, a Beijing white paper shared by state news agency Xinhua said. Beijing has time and again warned the Trump administration against raising reciprocal tariffs on its exports, while the US has been cautioning China to withdraw its levies on America. Last week, China said it would levy 34 per cent tariffs on all US goods.
China had called its trade surplus with the United States an inevitability and warned it had the “determination and means” to continue the fight if Trump kept hitting Chinese goods.
China’s currency has faced heavy downward pressure, with the offshore yuan at record lows due to the tariffs, but sources told Reuters the central bank has asked major state-owned banks to reduce US dollar purchases and will not allow sharp yuan declines.
‘So what?’
Soon after China raised their tariffs on US exports, US Treasury Secretary Bessent said, “They can raise their tariffs, but so what?”
He added that removing Chinese stocks from US exchanges is not “off the table.”
‘Grave concern’
On Wednesday, China told the World Trade Organisation that Trump’s tariffs can destabilise global trade.
“The situation has dangerously escalated. …As one of the affected members, China expresses grave concern and firm opposition to this reckless move,” China said in a statement to the WTO that was sent to Reuters by the Chinese mission to the WTO.
“While China opposes trade wars, it will firmly defend its legitimate interests,” it said in a statement to WTO members during a meeting on trade in goods.
China reaches out to India
Hours after US President Donald Trump imposed a whopping 104 per cent tariffs on China, Beijing sought to collaborate with India to mitigate the effects of US levies that have disrupted global markets.
Chinese Embassy spokesperson Yu Jing said, “China-India economic and trade relationship is based on complimentarity and mutual benefit. Facing the U.S. abuse of tariffs, which deprives countries, especially Global South countries, of their right to development, the two largest developing countries should stand together to overcome the difficulties.” (FirstPost)
