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    HomeEnglish NewsChina Retaliates Against US Tariffs, Escalating Trade Tensions

    China Retaliates Against US Tariffs, Escalating Trade Tensions

    China has announced retaliatory tariffs on US imports following President Donald Trump’s decision to impose an additional 10% tariff on Chinese goods. The move, aimed at curbing the production of the opioid drug fentanyl, has further intensified trade tensions between the world’s two largest economies.

    On Tuesday, China’s foreign ministry stated that it would impose 10% tariffs on US crude oil, agricultural machinery, large-displacement vehicles, and pickup trucks. Additionally, a 15% tariff will be levied on US coal and liquefied natural gas. These measures will take effect from next Monday, the ministry confirmed.

    The Chinese government criticized the US tariffs as a violation of World Trade Organization (WTO) rules and a disruption to normal trade relations. “This unilateral tariff hike seriously violates WTO regulations, does nothing to resolve its own problems, and disrupts normal economic and trade cooperation between China and the United States,” the Chinese foreign ministry declared in a statement.

    Meanwhile, President Trump remains firm on his stance against China. While he has temporarily suspended tariffs on Canada and Mexico after reaching an agreement with their leaders, the 10% tariff on Chinese imports remains on schedule to take effect next Tuesday. However, the White House confirmed that Trump plans to discuss the issue with Chinese President Xi Jinping in the coming days to avoid an all-out trade war.

    China has warned of further countermeasures if the US does not reverse its decision, reaffirming its commitment to defending its “legitimate rights and interests.” The Chinese government has also indicated plans to challenge the US tariffs at the WTO.

    Trump has accused China of enabling the production and trafficking of fentanyl, a powerful synthetic opioid, into the US. The drug has been linked to approximately 70,000 overdose deaths annually in the United States. China, however, insists that it has some of the world’s strictest anti-narcotics laws and denies the allegations.

    The US president has hinted at additional tariffs on Chinese goods if a resolution is not reached. “If we can’t make a deal with China, then the tariffs will be very, very substantial,” Trump stated, emphasizing that US consumers may bear the brunt of increased costs on imported goods such as toys and clothing.

    Trade between the two economic giants remains substantial, totaling over $530 billion in the first 11 months of 2024, with Chinese exports to the US surpassing $400 billion, second only to Mexico. However, the massive US trade deficit with China—estimated at nearly $1 trillion last year—has been a longstanding grievance for Trump, who has frequently criticized Beijing’s state subsidies and alleged unfair treatment of American firms operating in China.

    Economic analysts have raised concerns over the broader impact of the tariffs, warning that they could disrupt global trade and slow economic growth. Studies by institutions such as the Tax Foundation, the Tax Policy Centre, and the Peterson Institute for International Economics suggest that the tariffs could lower incomes, drive up prices, and hinder economic expansion in the US, Canada, Mexico, and China.

    As the trade standoff escalates, both nations face mounting pressure to negotiate a resolution before economic consequences deepen further.

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