China’s Ministry of Commerce has firmly opposed President Trump’s threat of new tariffs, vowing reciprocal actions. The proposed tariffs coincide with significant parliamentary meetings in China, linked to concerns over fentanyl trade. Experts anticipate a measured response from Beijing but caution that future negotiations may become increasingly challenging amid these tensions.

On Friday, China’s Ministry of Commerce condemned U.S. President Donald Trump’s renewed threat to impose an additional 10% tariff on Chinese goods. A ministry spokesperson stated, “If the U.S. insists on its own way, China will take all necessary countermeasures to defend its legitimate rights and interests.” The ministry urged the United States to return to dialogue for resolving conflicts equitably.

This statement followed Trump’s announcement that the new tariffs would take effect on March 4, coinciding with China’s annual parliamentary sessions. These tariffs come atop an earlier 10% tariff announced on February 4. The duties are framed as a response to China’s role in the fentanyl trade, which has been linked to significant overdose deaths in the U.S.

Experts suggest China’s immediate response could include raising tariffs on specific U.S. products, adding more American companies to its unreliable entity list, and tightening export controls on critical minerals. Neil Thomas of Asia Society indicated that while Beijing’s response is likely to be proportional, President Xi Jinping may prefer to negotiate to mitigate further pressures on China’s sluggish economic growth.

China’s exports have provided a silver lining amidst economic slowdowns, and retaliation is expected to target industries crucial to Trump’s voter base. According to Alfredo Montufar-Helu of The Conference Board, China is likely to leave room for negotiation to stave off escalating tariffs and other corrective actions from Washington.

China’s countermeasures after the initial tariffs included increased duties on U.S. energy imports and the designation of two U.S. firms as unreliable entities. Restrictions on critical minerals vital to U.S. industries were also tightened thereby adding complexity to the trade conflict. Stephen Olson from the Institute of Southeast Asian Studies emphasized that restricting U.S. access to essential minerals represents a significant leverage point for China.

The Ministry of Commerce’s recent statement indicated an escalation in rhetoric compared to their earlier responses, which seemed more conciliatory. This time, the ministry characterized Trump’s tariff threats as an attempt to deflect blame, criticizing the added economic burdens on American businesses and consumers.

Furthermore, the Chinese Ministry of Foreign Affairs reiterated a firmer stance, asserting that the U.S. tactics of coercion would ultimately backfire. Deborah Elms from the Hinrich Foundation noted that such aggressive tariff strategies may lead to Chinese reassessments regarding achievable trade agreements, potentially straining future negotiations further.

In line with ongoing tensions, Trump has instructed his administration to assess China’s adherence to trade agreements made during his first term, with results expected by April 1. This assessment may lay the foundation for further reciprocal tariffs aimed at balancing trade inequities, with Trump confirming, “The April Second Reciprocal Tariff date will remain in full force and effect.”

In summary, China’s Ministry of Commerce has vocally opposed President Trump’s proposed tariff increases and pledged to respond accordingly. As tensions escalate, experts suggest that retaliatory measures might target specific American industries while both sides seek pathways for dialogue. The unfolding situation remains sensitive, with the potential for further escalations and impacts on global trade dynamics.

Original Source: www.cnbc.com

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