China Warns of Countermeasures if Trump's Tariff Threat Persists
BEIJING -- China has issued a stern warning to the United States, threatening countermeasures if President Donald Trump follows through with his threat to impose a 100% tariff on Chinese imports. This comes as a response to Trump's latest challenge, which emerged after China implemented a series of export restrictions on rare earth minerals last week. The escalating trade tensions between the world's two largest economies risk derailing months of progress in trade negotiations, sparking fears of a repeat of the spring tariff battle that saw levies soar to unprecedented levels.
In Beijing's first official statement on the matter, a Ministry of Commerce spokesperson emphasized the inappropriateness of resorting to high tariffs as a means of engagement with China. The spokesperson asserted that if the US continues its unilateral actions, China will take resolute steps to protect its legitimate rights and interests. China's stance on a potential tariff war remains unwavering: it does not desire such a conflict but is prepared to face it.
The rapid escalation of trade tensions has had a significant impact on global markets, causing stock prices to plummet and investors to grow anxious. The fear of a repeat of the spring tariff battle, where Chinese and American imports faced levies of around 145% and 120% respectively, has rattled industries and markets. This uncertainty has also cast a shadow over the highly anticipated meeting between Trump and Chinese leader Xi Jinping, which was set to take place in South Korea in two weeks. However, Trump's rare earths issue has raised doubts about the meeting's occurrence.
Beijing shows no signs of backing down, instead urging Washington to correct its approach and preserve the progress made in negotiations. The commerce ministry characterized the new rare earths regulations as a justified action and blamed the US for the latest escalation, pointing to the Trump administration's introduction of restrictive measures against China within a short timeframe following the Madrid trade talks in September. Since then, Washington has added numerous Chinese firms to its export control list, expanded controls to cover subsidiaries of listed companies, and imposed special port fees on Chinese ships.
China's commerce ministry spokesperson criticized the US for its 'double standards' in handling export controls, highlighting the vast difference in the number of items covered by the US and Chinese export control lists. Beijing has long criticized Washington for overstepping its boundaries through export rules that prevent third-country companies from supplying China with chips made using American technology. However, China's recent move signals a strategic shift, as it adopts similar tactics.
The implications of these trade tensions extend far beyond the economic realm, impacting global industries and tech supply chains that rely on rare earth minerals for the production of everyday electronics, semiconductors, automobiles, and fighter jets. As the situation unfolds, the world watches with bated breath, awaiting the next move in this complex geopolitical chess game.
