China’s Commerce Ministry has issued a firm statement opposing U.S. President Donald Trump’s recent threats regarding additional tariffs on Chinese imports. On Wednesday, the ministry raised its opposition to “resolute.” They committed to take active countermeasures to defend China’s legitimate rights and interests, amid rising global trade conflicts.
The trade war began last July, when President Trump publicly floated the idea of slapping a 50% duty on all U.S. imports from China. This action was contingent upon Beijing’s removal of a previously established 34% tariff on American goods. This announcement was made a mere week after China made public their decision to put a 34% tariff in place. This action has further escalated the continuing trade war between the two countries.
The Finance Ministry issued public statements stressing their priority of safeguarding the interests of China’s economy first. It additionally cautioned that any additional tariffs would be met with fierce opposition. So the ministry doubled-down on their strongly-worded offense. It cautioned that any US unilateral trade approach would hurt not only China, but the US and the world.
The unresolved tariff feud lies at the heart of U.S.-China relations. So far, both parties have resorted to increasing trade barriers in a tit-for-tat manner. Negotiations have consistently broken down, leaving both sides frustrated. Consequently, businesses and investors are increasingly concerned about the potential long-term consequences of new tariffs on the future of international trade.
His proposed 50% tariff would be a huge escalation in the burgeoning trade war. Unfortunately, this conflict has quickly burned out as a narrow conflict, its effects spreading broadly on both economies. Some experts are concerned that such measures would be so aggressive as to invite retaliation from Beijing. They warn that other trading partners hurt by the shift in global trade policies could do the same.
The Commerce Ministry’s announcement makes clear that China is serious about retaliating strongly against economic pressure from the United States. By emphasizing its intention to pursue countermeasures, China signals its unwillingness to back down in the face of perceived threats.
The United States and the Republic of Korea are at an important crossroads in their historic alliance. In particular, they are concerned about how this unprecedented enforcement action could disrupt global supply chains and markets. Today’s escalating trade dispute is merely an expression of the deep-seated confusion about U.S.-China relations. Both countries have some enormous difficulties in arriving at a resolution that works for them both.