China has retaliated against the US by increasing tariffs on American imports to 125%, effective Saturday, in a tit-for-tat move against the Trump administration’s tariffs.
The Chinese Customs Tariff Commission announced the new tariffs, stating that further US tariffs would be economically senseless and “go down as a joke in world economic history”.
Key Highlights
- US Tariffs: The US had imposed 145% tariffs on Chinese imports, including 125% reciprocal tariffs and an additional 20% levy announced by Trump in January.
- China’s Response: China will ignore US tariffs but is prepared to take firm countermeasures if its interests are substantially undermined.
- Dialogue: China remains open to talks with the US to resolve the issue, but only on the basis of equality, mutual respect, and benefit.
- WTO Lawsuit: China has filed a lawsuit against the US with the World Trade Organisation’s dispute settlement mechanism.
Quotes from Chinese Officials
- “There are no winners in tariff wars or trade wars. China does not want to engage in such wars, but we are not afraid to do so,” said Chinese Foreign Ministry spokesperson Lin Jian.
- “In the face of US hegemony and coercion, compromise and concession are not viable options,” Lin added.
Background
The US had imposed baseline tariffs on all trading partners and reciprocal tariffs on imports from certain countries, ending duty-free treatment for goods from China and Hong Kong. This move has sparked a trade war between the two nations, with China determined to protect its interests.