Amid escalating trade tensions between China and the United States, China has officially demanded the full removal of the tariffs imposed by the U.S. The Ministry of Commerce of China stated that the U.S. must abandon its “wrong” approach and completely revoke the tariffs.
Trade Tariff War Between the World’s Economic Giants
The trade tariff war between the world’s two largest economic powers, China and the United States, has once again reached its peak. In response to recent controversial actions by the U.S. government, China issued a strong reaction and called for the immediate and complete removal of the tariffs imposed by the U.S. The Ministry of Commerce of China emphasized that the United States should fully remove the tariffs and abandon its “wrong” approach.
China’s Response to Trump’s Actions
This reaction from China follows the recent decision by U.S. President Donald Trump, who on April 2nd began imposing reciprocal 10% tariffs on over a hundred countries, including China. In some cases, these tariffs reached much higher levels. While Trump granted a 90-day suspension period for some countries, China was excluded from this list, and the tariffs on Chinese goods were increased to as high as 145%.
China Increases Tariffs to 125%
In response, China raised its tariffs on U.S. goods to 125% on Saturday, April 12. This tariff hike, along with increasing global economic pressures, has significantly affected trade relations between the two countries. In reaction, the U.S. government temporarily exempted some consumer electronics from tariffs, but senior U.S. officials have warned that these exemptions may be revoked as early as next month.
Statement from China’s Ministry of Commerce
In a statement released through state media, the Ministry of Commerce of China referred to the U.S. actions as only a “small step” toward correcting its “unilateral and incorrect” approach. China also emphasized that the U.S. has severely undermined international economic and trade order with its policies.
China’s Warning on the Impact of Tariffs
Additionally, Mao Ning, a spokesperson for the Chinese Foreign Ministry, warned that it would ultimately be the American people who bear the cost of these stringent trade policies. She pointed out that “it is not foreigners who are paying the tariffs; it is U.S. companies that pay them and then pass the cost on to consumers.”
White House Defends Tariff Strategy
On the other hand, the White House has defended its strategy, with Karoline Leavitt, President Trump’s press secretary, stating that over 75 countries have reached out to discuss trade with the President. She added, “By Friday, more than 15 official proposals have been submitted, and significant progress is being made.”
No Final Agreement Between Trump and Xi Jinping
However, no specific agreement has yet been reached between President Trump and Chinese President Xi Jinping, and tariff issues remain a significant obstacle in the trade relations between the two nations.
Impact on the Global Economy and Financial Markets
This situation, in addition to affecting the global economy, will have considerable consequences for financial markets. Changes in tariffs could lead to volatility in currency, stock, and even commodity markets, making it a critical issue for investors and analysts to monitor closely.
Source:
Bitcoin.com
