China has retaliated against US tariffs by imposing its own 15 percent tariffs on coal and LNG imports, alongside additional tariffs on crude oil and large vehicles. These actions arise in response to Trump’s initial 10 percent tariffication on Chinese imports. The escalating trade tensions echo past trade wars and complicate discussions between the two nations.
China has announced a 15 percent tariff on imports of coal and liquefied natural gas (LNG) from the United States. This is a direct reaction to the US administration’s imposition of a 10 percent tariff on Chinese goods. Furthermore, China’s Ministry of Finance revealed additional tariffs, imposing 10 percent duties on US imports of crude oil, agricultural machinery, large vehicles, and pick-up trucks, effective next Monday.
The newly implemented tariffs were described by China as a consequence of the US’s “unilateral tariff hike,” asserting that it violates World Trade Organization (WTO) regulations. The Ministry stated that such moves exacerbate existing trade tensions and undermine constructive economic cooperation between the two nations. This tariff escalation follows a period of ongoing discussions involving US President Donald Trump and Chinese President Xi Jinping.
Earlier, on Saturday, President Trump announced a broad set of tariffs targeted at several major trading partners, including an additional 10 percent tariff on goods from China. The rationale behind these tariffs was framed within the context of curbing illegal immigration and drug imports, notably fentanyl, into the US. However, Trump had previously postponed tariffs against Canada and Mexico for further negotiations on border security.
The trade relationship between China and the US underwent severe strain during Trump’s administration, initiating a trade war that included tariffs affecting hundreds of billions of dollars worth of goods. Although a trade agreement in 2020 aimed to boost US exports to China by $200 billion, the COVID-19 pandemic disrupted this plan, resulting in a significant widening of the trade deficit to $361 billion, according to recent Chinese customs data.
Trump has warned that tariffs could be increased if China does not take action to mitigate fentanyl exports to the US. In reply, China regards the fentanyl issue as an American problem and has suggested it might contest the tariffs at the WTO. Nevertheless, Beijing remains open to continued dialogue and negotiation regarding these trade issues.
The recent actions between the US and China highlight ongoing tensions in their trade relationship, characterized by tariffication as a tool of foreign policy. These measures follow a precedent set during Trump’s first term, where trade disputes were common due to concerns over trade imbalances and security issues related to narcotics. The dynamics of international trade are complex, often influenced by geopolitical considerations and economic policies that aim to protect domestic interests.
The imposition of tariffs by China in response to US trade policies demonstrates the continuing cycle of retaliatory measures between the two superpowers. This situation underscores the fragility of current geopolitical relations and the complexities of trade negotiations, particularly concerning sensitive issues such as immigration and drug trafficking. As both nations navigate these challenges, open channels for dialogue remain crucial for future economic cooperation.
Original Source: www.aljazeera.com
