On Wednesday, the US-China trade war sexened dramatically as Beijing announced a drastic increase in tariffs on American goods, increasing rates from 34 % to 84 %, just one day after President Donald Trump’s new 104 % tariffs on Chinese imports became effective.
China’s finance ministry said the new tariffs will go into effect on Thursday at 12:01 pm, calling the US actions a breach of international trade standards and a menace to world security.
The action comes in addition to a burst of retaliatory measures, including adding 11 more companies to its “unreliable entities” list and disabling six US artificial intelligence firms, effectively limiting their exposure to Chinese technology.
The finance department stated in a clearly worded speech that” the tariff intensification against China by the United States just hemorrhoids mistakes on top of mistakes and greatly violates China’s legitimate rights and interests.
China also stated that it would file a new lawsuit against the US at the World Trade Organization and that it would “fight to the close” in the event that Washington’s situation worsens.
Trump’s most recent tariffs, which went into effect on Wednesday, target lots of nations but hit Chinese goods the hardest. Beijing quickly retaliated, claiming that the taxes were based on an obsolete knowing of trade imbalances. US-China industry is “roughly in equilibrium,” according to a bright report released by the Chinese Ministry of Commerce that included services and business activities.
In 2023, China declared a$ 26.57 billion trade-in-services gap with the US, primarily from financial, insurance, and specialized services sectors.
Additionally, the Commerce Ministry charged Washington with breaking the Stage 1 trade agreement that was signed during Trump’s first word. As an example of” coercion” and “forced technology transfer,” the US law that mandated TikTok’s parent company ByteDance to divest the app or face a ban was cited as an example of” coercion” and “forced technology transfer.”
According to the white paper, “historical and factual evidence indicate that the US’s increase in tariffs will never solve its own problems,” warning that the action had increase US inflation, undermine global supply chains, and risk the US economy going into recession.
China has remained unwavering despite various nations attempting to reach a deal with the White House. According to foreign ministry spokesman Lin Jian,” If the US really wants to solve issues through dialogue and negotiation, it should follow an approach of fairness, respect, and common benefit.”
