China Raises US Tariffs To 125%—Xi Urges EU To Back Beijing's Pushback Against ‘Unilateral Bullying'
China's President Xi Jinping and Spain's Prime Minister Pedro Sanchez arrive to a bilateral meeting ... More at Diaoyutai Guest House in Beijing.
Beijing's State Council Tariff Commission announced it was raising its tariffs on all U.S. imports from 84% to 125% as a tit-for-tat response against Trump's decision to raise tariffs on China to the same level on Wednesday.
Chinese officials signaled they do not plan to respond to any further escalations in the tariff rate by the U.S., saying 'if the US continues to play the numbers game of tariffs, China will ignore it.'
Chinese President Xi Jinping publicly commented on the escalating trade clash for the first time while meeting Spanish Prime Minister Pedro Sanchez in Beijing, saying 'there is no winner in a tariff war,' and adding going against the world would only lead to isolation, state-controlled Xinhua News Agency reported.
Xi also urged the European Union to side with Beijing and jointly 'oppose unilateral bullying practices.'
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Trump signed an executive order Thursday to implement his decision to impose a 125% reciprocal tariff against all Chinese imports in response to Beijing's decision to match the president's earlier hike to 84%. Trump's hike, which he announced Wednesday, came as he also announced a 90-day pause on broader 'reciprocal tariffs' against other nations announced last week. The White House later confirmed the total levy on goods from China will stand at 145% as it includes the 125% and an additional 20% that was put in place previously. The Trump administration said the earlier 20% tariff was because of China's alleged role in the fentanyl crisis.
In a statement to the press, a Chinese Commerce Ministry spokesperson said the repeated escalation of the 'abnormally high tariffs on China' have turned into a 'numbers game' with 'no practical economic significance.' The ministry said any further increases will 'expose the US's use of tariffs as an instrument and weapon to bully and coerce, and become a joke.' While Beijing plans to 'ignore' any further tariff increases, it warned any U.S. actions that substantially infringe on China's rights and interests,' will be 'resolutely' countered and China will 'fight to the end.'
Speaking to reporters during the Chinese Foreign Ministry's daily press conference Friday, spokesperson Lin Jian said China does not want to fight a tariff war but is not afraid of a confrontation. 'If the United States really wants to solve the problem through dialogue and negotiation, it should stop exerting extreme pressure and acting recklessly,' Lin said. He then added that no compromise or concession can be made in the face of 'U.S. bullying and hegemony.' During a cabinet meeting on Wednesday Trump told reporters that he hopes Chinese President Xi Jinping will ultimately negotiate a deal on tariffs. 'I think President Xi is a very smart guy, and I think we'll end up making a very good deal for both [countries],' the president said. 'China wants to make a deal. They just don't know how quite to go about it. You know, it's one of those things they don't know quite – they're proud people.'
Trump Announces 90-Day Pause On Hefty Tariffs — Though 10% Levies Will Remain (Forbes)
Trump's Tariffs On China Are Now At Least 145%, White House Confirms—Higher Than He Previously Claimed (Forbes)
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