China has emphasised that they will “fight to the end” against US President Donald Trump’s trade war by raising its tariffs on U.S. products to 84%, up from its previously announced 34%.
This comes as tariffs of 104 percent on Chinese imports came into effect on Wednesday, April 9.
The Chinese president said tariffs on US goods will rise to 84% from 34%, effective April 10.
The government issued a white paper on the US-China commercial ties on Wednesday, saying Beijing “does not deliberately pursue a trade surplus.”
But, it said, if the US “insists on further escalating its economic and trade restrictions, China has the firm will and abundant means to take necessary countermeasures and fight to the end.”
In a separate statement, China’s Ministry of Commerce warned Washington that there “are no winners in a trade war.”
“China does not want one, but the government will never allow the legitimate rights and interests of the Chinese people to be harmed or taken away.”
It said Trump is using tariffs “as a tool to exert maximum pressure for selfish gains – this is classic unilateralism, protectionism and economic bullying.”
Beijing also imposed restrictions on 18 US companies, mostly in defense-related industries, adding to the 60 or so American firms punished over Trump’s tariffs.
The Chinese government, however, says the two countries could still resolve their differences “through equal-footed dialogue and mutually beneficial cooperation.”
The Trump administration announced a sweeping new tariff policy last week, warning other countries not to retaliate.
The European Union announced its first retaliatory tariffs after the US imposed 25% levies on EU steel and aluminum exports last month.
The tariffs on US goods worth about $23 billion will take effect this month and target products such as soybeans, diamonds, and poultry.
Zhiwei Zhang, chief economist at Pinpoint Asset Management, said China had sent a “clear signal” that it intended to maintain its stance despite the higher US tariffs.”China can afford to wait. I don’t expect a quick and easy way out from the current trade conflict,” Zhang said. “The damage to the two economies will become visible soon. The outlook for international trade and global economic growth is highly uncertain.”
