 "US-China trade war looms as Beijing vows retaliation to Trump’s new tariffs taking effect today")
A trade war between US and China seems closer than ever before.
US President Donald Trump had threatened China with an extra 10 per cent levy last week. In a little less than two hours, those tariffs are expected to come into force, lifting average US levies on Chinese imports to around 33 percent, according to estimates by Nomura.
The duties are a response to what the White House considers Chinese inaction over drug flows. These are an additional hike to preexisting levies on thousands of Chinese goods.
China vows to hit back
China is not one to stay quiet about such a move.
The _Global Times_ , owned by a newspaper run by the governing Communist Party, had reported on Monday (March 3) that China would hit back with a series of both tariffs and non-tariff measures. American agricultural and food products were expected to be caught in the crossfire.
The country’s Commerce Ministry on Tuesday (March 4) vowed to hit back against the fresh US import tariffs, reiterating its stance that the Trump administration was trying to “shift the blame” and “bully” Beijing over fentanyl flows.
The US claims that China supplies chemicals for fentanyl production, while China denies any involvement.
China has repeatedly asserted that the US’ unilateral tariffs breach World Trade Organisation rules and undermine the multilateral trade system, a statement from the Chinese Commerce Ministry said.
Impact Shorts
More Shorts“Such measures will not solve (the US’) problems but instead will harm China-US economic and trade cooperation and disrupt regular international trade,” it added.
China has demanded that the US “immediately withdraw” its unilateral tariff measures that are “unreasonable and groundless, harmful to others,” the ministry said.
Chinese leaders are anxiously observing a potential trade war with the United States as Trump reenters the political scene, following the country’s struggles for a robust economic recovery post-pandemic.
With inputs from agencies
 "Russian drones over Poland: Trump’s tepid reaction a wake-up call for Nato?")
 "As Russia pushes east, Ukraine faces mounting pressure to defend its heartland")
 "Why Mossad was not on board with Israel’s strike on Hamas in Qatar")
 "Turkey: Erdogan's police arrest opposition mayor Hasan Mutlu, dozens officials in corruption probe")
 "Russian drones over Poland: Trump’s tepid reaction a wake-up call for Nato?")
 "As Russia pushes east, Ukraine faces mounting pressure to defend its heartland")
 "Why Mossad was not on board with Israel’s strike on Hamas in Qatar")
 "Turkey: Erdogan's police arrest opposition mayor Hasan Mutlu, dozens officials in corruption probe")
