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China on Friday piled on additional tariffs of 34 per cent on all US goods entering the country, ratcheting up trade tensions a day after United States (US) President Donald Trump announced import taxes on countries across the globe. This was the first tariff response by any ally or adversary of the US, raising risks of an all-out global trade war.
While announcing its retaliatory tariffs, China’s State Council Tariff Commission said the US actions were “not in line with international trade rules, seriously undermines China’s legitimate rights and interests, and is a typical unilateral bullying practice”.
Beijing also revealed plans to add 16 US entities to an export control list and classify 11 others as “unreliable” entities.
“The purpose of the Chinese government’s implementation of export controls on relevant items in accordance with the law is to better safeguard national security and interests, and to fulfill international obligations such as non-proliferation,” the Commerce Ministry said in a statement.
President Trump had on Wednesday announced an additional 34 per cent reciprocal tariffs in addition to the existing 20 per cent duties on all Chinese imports. Since returning to power in January, he had already imposed two rounds of 10 per cent additional tariffs on Chinese imports, first in February and then again in March, which the White House justified as a measure to combat illicit fentanyl exports from China.
China had previously responded with moderate retaliatory tariffs, targeting US agricultural products, fuel, and select American firms, while strengthening its export controls.
Despite the growing economic clash, Trump in his Rose Garden briefing acknowledged his respect for Chinese President Xi Jinping, stating: “I have great respect for President Xi, great respect for China, but they were taking tremendous advantage of us. They understand exactly what’s happening and … they’re going to fight.”
The 34% tariff makes it very difficult for US agricultural products to enter China. At the same time, experts believe this opens a window for other exporters like Australia and Brazil to increase their market share in China.
Trump held up a chart listing US trading partners and the tariffs he claimed they imposed on the United States, justifying his latest round of reciprocal tariffs.
He explained that the calculations reflected a combined rate of tariffs, non-monetary barriers, and other trade practices that he described as “cheating”. Under his new policy, the US would impose tariffs at roughly half the rate that other nations charge the US.
According to Trump, China imposes 67% tariffs on US imports, a figure that includes the impact of currency manipulation and trade barriers.
For months, Trump had promised reciprocal tariffs to offset these disadvantages, arguing that other countries had been “ripping off” the US for years.
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