China calls Trump's trade war a joke, jumps tariffs on U.S. goods to 125%
In the latest trade back-and-forth, China has surged its tariff rate on US goods from 84% to 125%, at the same time saying it won't negotiate if the U.S. continues to engage in "trade blackmail."
China's Ministry of Commerce | Image credit: N509FZ at Wikimedia Commons
Starting on April 12, the Chinese government will raise tariffs on all U.S. goods by another 41%. This increase comes two days after the last increase, saw tariffs surge from 34% to 84%.
In a statement released by China's State Council Tariff Commission, spotted by Bloomberg, China has declared that it will raise tariffs from 84% to 125%. It then said that because of the prohibitively high tariff level, there is no market for American goods.
But, should America raise the tariffs again, China has made it clear that it will not raise tariffs. At the same time, the Ministry of Commerce said that if the U.S. is to continue infringing upon China's rights and interests, the country will enact its own countermeasures and follow them through to the end.
It didn't specify those countermeasures. However, as it has done before, there are always non-tariff options like limiting quantities of US goods that are allowed in the country, and other restrictions and requirements placed on US businesses, like Apple, to continue to do business in the country.
In a separate statement released by China's Commerce Ministry China identified the Trump Administration's tariffs coercion and bullying, saying the abnormally high tariffs have no practical meaning in the economy and ultimately have become a joke.
It also said that China is open to negotiation, but threats and pressure are not the right way to deal with China. Instead, the ministry would like to resolve differences through equal dialogue on the basis of mutual respect.
President Trump, however, has said he is waiting for a call from Beijing. China does not appear interested in calling first.
On April 9, Trump announced that he had authorized a 90-day pause on new tariffs against most countries the U.S. deals with. At the same time, there is also a lowering of the reciprocal tariff for most countries to 10% for the period, which is still three times more than what was applied before in most cases.
China, however, was not included in that pause. Instead, the administration raised the tariffs to 125%, but later clarified that the tariff rate was actually 145%. Apple stock, predictably, took another hit.
Apple's stock on Friday morning has been tumultous. At press time, it is about at Thursday's close.
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Comments
I expect there may be exemptions for Amazon, Apple and Walmart. But the hundreds of thousands of small stores, local stores, regional stores, that are the heart of the economy will be massacred.
As someone pointed out yesterday, this whole scrap is above all making China look like the reliable, stable, rational, trustworthy partner. That is going to be the most harmful thing coming out of this for the US.
When china hold a huge proportion of US debt it's a stupid man that provokes the dragon especially when the US need mountains of new debt continually.
The bond markets are the real king here and will determine the outcome of this farce.
China is in a situation - provoked by the US - where mutual trade is severely impacted.
They won't go crawling to Trump and they've made that very clear.
They will continue to get rid of US debt but with a common sense approach. They will tighten restrictions on critical minerals/rare earths. They could even switch away from Boeing to Airbus as a symbolic move. They will strengthen BRICS+ deals as well as tempt the EU.
At the end of the day it is Trump who started everything and it is Trump who will have to fix it.
He blinked first with the 90 day pause. Now he will have to blink again.
Yes, I agree it should be done something to bring back production in America, but in opposite to China, there is no strategy on the side of America. And that creates chaos and uncertainty. It is to simplistic to belief that one person only, can solve the problems in America and the world with one signature only on an Executive Order. Such a man it is not born yet.
China does not think like Trump or America. They know what they are doing and are leaps and bounds ahead in their determination and economic trading intelligence. They will be in for the long haul and will no doubt come up with retaliation if required to which Trump will have no response. Trump blinking will be just the start.
It is funny seeing how Trump and his supporters work towards USA's destruction
Ya'll are funny.
all I’ve heard are fear mongering.
I don’t know where you get “90” from.m his post. But some have publicly stated so and some have made the trip to meet the president in person to cut a deal. You’ve got China, tje eu, and Canada adding even more tariffs onto their already present tariffs. These three have already been mentioned by the president as problems before the tariffs were implemented. So no surprise there.