Switch the White House newsletter on free of charge
Your guide to what the US election 2024 means for Washington and the world
Beijing has come up with new 10 percent tariffs that the United States has raised for Chinese exports and explains that “the necessary countermeasures to defend its rights and interests”, since the trade voltages between the two powers are in a new phase enter.
The Foreign Ministry announced on Sunday that China spoke out against the tariffs, from which it was called “under the pretext of the Fentanyl question”.
“The United States has to objectively and rationally watch and solve its own fentanyl problem instead of threatening other countries with arbitrary tariffs,” said the MFA.
China’s Ministry of Commerce said there would be a lawsuit at the World Trade Organization.
The additional 10 percent taxes come with New 25 percent tariffs With exports from Canada and Mexico when President Trump begins an extended trade war after a series of measures that the United States imposed in China during its first term.
Trump said that the influx of “illegal aliens” and drugs, including the opiate fenanyl, had created a “national emergency” that justified the tariff.
During the election campaign last year, he had warned against China before tariffs of up to 60 percent, but then signaled an rate of 10 percent. He has associated the taxes with the role of the country in the flow of ingredients or “forerunners” for fentanyl.
China agreed to take measures To curb the forerunner flow at a summit between President Xi Jinping and the then President Joe Biden in San Francisco in November 2023. Since then, Beijing has taken some measures that were welcomed by the bid administration, but critics, including some in the initial sentence, wanted China to do much more.
Although exposed to the government, the measures are a significant challenge for the government of XI Jinping at a time when weaknesses in domestic demand have made it particularly dependent on exports for economic growth. China’s commercial surplus hit last year A record high From almost $ 1.
Tao Wang, Chef -China economist at UBS Investment Bank, said that the tariffs were imposed faster than expected and the cover of 10 percent were more expansive than gradually after the first administration of Trump.
“This is wider and probably much greater than in the first round,” she said, adding that many of Trump expected to add more tariffs as soon as his officials have completed a review of trade policy in April.
Wang said she was expecting a hit by China GDP from 0.3 to 0.4 percent.
In a report that was published last week, Morningstar said that the 10 percent tariffs in China would influence the most household appliances, house furniture, lithium batteries and electric vehicles. However, it added that many companies would “probably see an influence of less than 5 percent of their respective total sales and that they” may not be as bad as for some industries “.
Beijing is also imposed with the EU to tariffs that were imposed against tariffs last summer Cognac to dairy products.
