By Heraldviews
China has demanded the US immediately cancel its latest tariffs and pledged countermeasures, escalating tensions between the world’s two largest economies.
The
warning from Beijing came after US President Donald Trump announced sweeping
new levies, including a 34% additional tariff on Chinese goods, on
top of existing 20% duties, bringing the total new charges to 54%.
"Firm
Opposition" from China
China’s
Commerce Ministry said the US move "disregards years of multilateral
trade negotiations" and the benefits America has gained from global
trade.
"China
firmly opposes this and will take countermeasures to safeguard its own rights
and interests," the ministry said in a statement.
The
move risks deepening a global trade war, disrupting supply chains and
raising costs for businesses and consumers.
How
the New US Tariffs Will Work
- From Saturday,
Chinese exporters will face a 10% baseline tariff on nearly all
goods shipped to the US.
- The
remaining higher "reciprocal tariffs" (up to 34%) take
effect from 9 April.
- The average
US tariff on Chinese goods will reach 76%, according to trade expert Chad
Brown of the Peterson Institute for International Economics.
Trump
Closes "De Minimis" Loophole
The
US president also signed an order closing a trade loophole that
allowed low-value packages from China and Hong Kong to enter the
US duty-free.
Unmet
Trade Deal Promises
The
US had given China until 1 April to prove it was meeting commitments
under the 2020 "Phase 1" trade deal, which required $200
billion in additional US purchases over two years.
But Beijing
fell short after the COVID-19 pandemic disrupted trade. Chinese
customs data shows:
- 2017 (pre-trade
war): $154bn in US imports
- 2023: $164bn,
still below the deal's targets
What
Happens Next?
China
has not yet detailed its retaliation, but options could include:
- Higher tariffs on
US goods (such as soybeans, aircraft, or cars)
- Export
restrictions on key materials
- Trade
investigations targeting US firms
With
both sides digging in, the risk of a full-blown trade war looms
larger, potentially hitting global growth and inflation.
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