Beijing Slams America of ‘Contradictory Stances’ Regarding Tariff Threat
Donald Trump’s latest warning to impose an additional 100% tariff on items imported from China has been described as a “typical example” of United States’ contradictory behavior, per the Beijing administration.
A Commerce Ministry spokesperson also stated that Beijing could enact its own unrevealed “responsive actions” if the US President executes his threat, noting that the country was “fearless” of a possible trade conflict.
Last Friday, Trump responded at China’s decision to strengthen its regulations for overseas sales of rare earths, alleging China of “turning aggressive” and attempting to hold the international market “captive”.
Additionally, he vowed to pull out of a scheduled talks with Beijing’s head of state Xi, which was arranged for a summit in South Korea before the month ends.
His statements on Friday rattled global markets, with the benchmark US stock index dropping nearly three percent, marking its biggest drop since April.
The president’s words reignited apprehensions of a trade conflict between the United States and China.
Earlier this year, the two sides had agreed to remove high import duties on each other’s imports, which had created the possibility of trade halting between the two nations.
Consequently, American import duties on Chinese imports incurring an additional 30% levy compared with the year’s onset, while US goods entering the country incur a ten percent duty.
Beijing’s recent statements – published by the Commerce Ministry in the form of written responses to media inquiries – echoed language from the zenith of the ongoing trade dispute.
They criticised American limits on exports on electronic components while justifying Beijing’s overseas sale regulations on rare earth minerals as “normal actions” to ensure domestic safety and that of the global community.
Their representative remarked that for “an extended period”, the US had “expanded the interpretation” of national security, abused overseas sale restrictions and “enforced” biased policies against Beijing.
“Resorting to tariff threats is not the correct approach to deal with Beijing,” the official said.
“The nation’s view” on a import duty dispute has always been unchanging: we wish to avoid one, but we are not afraid of one.”
The previous week, the Chinese government declared it was strengthening export controls on rare earth minerals and additional substances critical for high-technology production.
The action was viewed as a significant step, as the state refines about 90% of the planet’s critical minerals, which are employed in goods such as renewable energy components and handheld devices.
Latest statements from the US and China are being seen by some as a method of enhancing bargaining power in preparation for upcoming negotiations.
It is unclear whether a talks between Donald Trump and President Xi, scheduled at a summit in the Republic of Korea before month’s end, will go ahead.