China has strongly condemned the United States’ latest threat to impose a staggering 100% tariff on Chinese imports, labeling it a clear instance of “US double standards.” A spokesperson for China’s Commerce Ministry asserted that Beijing is prepared to implement its own, as yet unspecified, “countermeasures” should the US President follow through with this aggressive tariff hike. The spokesperson also conveyed China’s firm stance, stating that the nation “is not afraid” of engaging in a trade war.
The US President, in a fiery response on Friday, accused China of being “very hostile” and attempting to hold the world “captive.” This escalation follows China’s recent move to tighten export regulations on rare earth materials. The escalating rhetoric has cast a shadow over an anticipated meeting between the US President and Chinese President Xi Jinping later this month, with the former even threatening to withdraw from the summit.
These developments have sent ripples through global financial markets, with the S&P 500 index experiencing its sharpest decline since April. The renewed fears of a trade war between the two economic powerhouses come after a period of tentative de-escalation in May, when both nations had agreed to roll back previous tariffs. However, the current situation sees US tariffs on Chinese goods facing an additional 30% levy compared to the beginning of the year, while Chinese tariffs on US imports have also seen an increase.
China’s recent statements, issued via written responses to journalists, echo the strong language used during the peak of the previous trade conflict. The nation defended its export controls on rare earths, crucial components for advanced technology manufacturing, as “normal actions” necessary for national security. Conversely, China criticized the US for “overstretching the concept of national security” and employing “discriminatory practices” through export restrictions on semiconductors.
“Resorting to tariff threats is not the right way to engage with China,” the spokesperson emphasized, reiterating China’s consistent position: “We do not want one, but we are not afraid of one.”
Related Stories
- Trump threatens to impose additional 100% tariff on China
- Has the clock stopped on Swiss US trade?
- Trump’s global tariffs ‘victory’ may well come at a high price