This week, the United States and China took the tariffs war a notch higher, getting them to at least 84 per cent on both ends.
China’s additional tariffs on products imported from the United States to 84 per cent would be effective from Thursday, 12:01 pm, the Customs Tariff Commission of the State Council announced on Wednesday.
This followed Trump’s decision to impose additional tariffs on Chinese imports from 34 per cent to 84 per cent.
The US President had threatened to have it at 50 per cent after China’s retaliation to earlier tariffs.
This tariff war started soon after Trump was sworn into office for his second term.
“President Trump’s tariffs will strengthen American companies, drive investment in the U.S., support working families, and restore American prosperity,” the White House said.
Almost all countries that trade with the US have been hit with the tariffs, and the US President had previously warned that it would be bad for any country that retaliates.
“Do not retaliate, and you will be rewarded.”
China is ready to fight till the end if the United States is bent on waging a tariff war or trade war, a Chinese foreign ministry spokesperson said.
Lin Jian said that the indiscriminate imposition of tariffs by the United States seriously violates the legitimate rights and interests of other countries.
"It is typical unilateralism, protectionism, and economic bullying, and has been widely opposed by the international community.
“China will take necessary measures to resolutely safeguard its lawful rights and interests. If the United States ignores the interests of the two countries and the international community and insists on fighting tariff wars and trade wars, China will surely fight till the end," Jian said.
His remarks were in response to the 50 per cent retaliatory tariffs by the US President.
After China’s announcement of the 84 per cent tariff effective Thursday, April 10, President Trump posted on his truth social that he has decided to pause all tariffs imposed on countries for at least 90 days, save for China.
Trump also directed a lowered reciprocal tariff of 10 per cent in the 90 days.
He further announced an immediate 125 per cent tariff on over their ‘lack of respect’ for the world’s markets.
“Based on the lack of respect that China has shown to the World’s Markets, I am hereby raising the Tariff charged to China by the United States of America to 125%, effective immediately. At some point, hopefully in the near future, China will realize that the days of ripping off the U.S.A. and other Countries are no longer sustainable or acceptable.
“Conversely, and based on the fact that more than 75 Countries have called Representatives of the United States, including the Departments of Commerce, Treasury, and the USTR, to negotiate a solution to the subjects being discussed relative to Trade, Trade Barriers, Tariffs, Currency Manipulation, and Non Monetary Tariffs, and that these Countries have not, at my strong suggestion, retaliated in any way, shape, or form against the United States, I have authorized a 90 day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately. Thank you for your attention to this matter,” Trump wrote.
Experts, however, say that these tariffs could, in the end, have a bad effect on the American people.
While China is yet to respond to the new tariff, the world expects that the response should be coming soon.
Sources also say that Trump is already working to have talks with Chinese President Xi Jinping to negotiate the tariffs.
However, there is no clear endgame to this tariff war, even though the US believes Trump is only pulling the art of sealing deals.
Already, China has officially filed a complaint against the United States at the World Trade Organization (WTO) over newly imposed Tariffs.
China says the tariff imposed by the US on Chinese goods is inconsistent with set laws on US Tariff agreements.
China has requested WTO dispute consultations with the US in regard to the new tax measures on goods originating from China.
The request was circulated to WTO members on February 5.
"China claims that the 10 per cent additional ad valorem duties applied on all goods originating in China, as well as measures with respect to the availability of drawback and duty-free de minimis treatment, which apply to all products of Chinese origin, are inconsistent with US most-favoured-nation obligations under Article I:1 of the General Agreement on Tariffs and Trade (GATT) 1994 and US tariff obligations under Article II:1(a) of GATT 1994,” the WTO said.
