Today (11.04.2020) China raised its duties on US products to 125% in the last circular of trade dispute with Washington, just a fewer hours after Xi Jinping said that "there are no winners in the tariff war".
Xi made these comments at a gathering with the Prime Minister of Spain, at which he invited the EU to cooperate with China in order to counter “threat” which is part of a visible run to support another trading partners.
The Chinese Ministry of Commerce has announced that it raises the previously introduced 84% customs duties on all imports from the USA to a level of 125%, again saying that China is ready to “fight to the end”. The message besides suggested that this could be Beijing's last movement as part of common customs increases, as ‘at the current tariff level there is no marketplace acceptance for US goods exported to China’.
"If the United States continues to impose duties on Chinese goods exported to the USA, China will ignore it", it was said.
"Another imposition of besides advanced tariffs on China by the US has become nothing more than a numerical game without real economical significance," said the spokesperson for the Chinese Ministry of Commerce. "It only exposes American customs practice even more as a tool of intimidation and coercion, turning into a joke".
Asian indexes followed Wall Street on Friday, where nipponese Nikkei dropped by almost 5%, and Hong Kong stock headed for the largest weekly drop since 2008. Oil prices were besides expected to fall for the second week in a row.
Meanwhile, Chinese officials talked to 3rd country trading partners about how to deal with US customs tariffs.
Friday (11.04.2025) Xi welcomed Spanish Prime Minister Pedro Sánchez, who had previously spoken to his counterparts in Saudi Arabia and South Africa. According to the authoritative Chinese call summary, Xi said "there will be no winners in the tariff war, and going against the planet will consequence in isolation", in apparent relation to the US.
"China and the EU should fulfil their global obligations, jointly keep the trend of economical globalisation and the global trade environment and jointly defy unilateral intimidation, not only to defend their own legitimate rights and interests, but besides to defend global integrity and justice and to defend global rules and order," said Sánchez, Chinese President.
Sánchez told Xi that his country advocated a more balanced EU-China relation based on negotiations to address differences and cooperation in areas of common interest.
Beijing reported that next week Xi would travel to Southeast Asia, including Vietnam and Cambodia.
The French President's account on the X portal featured Emanuel Macron's entry, commenting that Trump's partial suspension of duties was a “signal that leaves the door open for conversation. But this pause is fragile. This 90-day break means 90 days of uncertainty for all our companies, both sides of the Atlantic and beyond."
U.S. Treasury Secretary Scott Bessent tried to calm the skeptics' concerns, saying at a cabinet gathering on Thursday that more than 75 countries wanted to start trade negotiations with the U.S., and Trump expressed hope for an agreement with China. However, the US S&P 500 index lost another 3.5% on Thursday.
Further declines are assumed due to the fact that according to analysts, this is an apparent reaction to uncertainty related to the unforeseeable US customs policy.
Bessent did not care about the resale on the marketplace on Thursday and predicted that the conclusion of contracts with another countries would supply more certainty. As evidence he cited that the US and Vietnam agreed to start formal trade talks after Bessent had spoken to Vietnamese deputy prime minister Ho Duc Phoec.
Taiwanese president said his government would besides be 1 of the first trading partners to start negotiations. Taiwan, covered by a 32% tariff, offered zero duties as a basis for talks.
According to local media, nipponese Prime Minister Shigeru Ishiba set up a task force led by a close associate who hopes to visit Washington next week.
Donald Trump told reporters in the White home that he thought the US could make a deal with China, but reiterated his argument that Beijing "really used" the US for a long time.
"I am certain we will be able to get along very well," said the president of the United States, referring to Xi. In fact (Xi) has been my friend for a long time and I think we will yet work out something that will be very good for both countries."
"We will never sit by and watch the legitimate rights and interests of the Chinese people breach, nor will we sit by erstwhile global economical and trade rules and a multilateral trading strategy are questioned," said the spokesperson for the Chinese abroad Ministry Lin Jian.
In addition to the retaliatory duties, Beijing limited the import of Hollywood films and placed 18 American companies on trading restrictions lists. The Ministry of Commerce has stated that China's doors are open to dialogue, but must be based on common respect.
With continued commercial hostility between the 3 major US trading partners (Canada, Mexico, China), Goldman Sachs estimates the likelihood of recession to be 45%.
According to researchers at Yale University, even after decreasing rates, the average import work imposed by the USA is the highest in over a century.
Uncertainty prevails, which surely does not favour decisions to invest, decision production, get US bonds. It is not known whether what has been said present will apply tomorrow.
Leszek B. Glass
Email: [email protected]
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