China on Friday struck back at President Trump’s latest tariff hike, raising its own rate on the US to 125% as it mocked his trade policy as a “joke” in a scathing statement.
The nation’s move to raise its tariff on US imports from 84% to 125% marks its third retaliation as tensions between the two trade partners escalate.
“The US alternately raising abnormally high tariffs on China has become a numbers game, which has no practical economic significance, and will become a joke in the history of the world economy,” a spokesperson for China’s Commerce Ministry said in a statement.
Though China reiterated it was willing to “fight to the end,” the country hinted it wasn’t looking to hike rates in the future.
“If the US continues to impose tariffs on Chinese goods exported to the US, China will ignore it,” the country’s finance ministry said.
The latest escalation comes soon after Trump paused higher rates on most nations for 90 days, leaving a 10% baseline import tax in place.
But he slapped an additional 125% tariff on China, exempting Beijing from the pause due to a “lack of respect.”
The White House later confirmed the nation was facing a total 145% tariff, on top of an earlier 20% levy.
“There are no winners in a tariff war and going against the world will only result in self-isolation,” Xi Jinping, China’s top leader, said on Friday, speaking publicly on the matter for the first time.
China said it was filing another lawsuit with the World Trade Organization opposing Trump’s tariffs.
Economists have warned the hefty tariffs could reheat inflation and even trigger a recession at home, as producers are forced to face higher costs and will likely pass at least some of the additional fees to consumers.
Companies with US-based supply chains, meanwhile, could take a significant hit from China’s retaliatory tariffs. If firms pass some of the additional cost through to Chinese consumers, they will likely become less competitive in a crucial market.
Industries from agriculture and food to planes and semiconductors could suffer massive financial losses in the US, potentially leading to downsizings and closures, experts previously told The Post.
Credit: Source link
