The United States has escalated its tariff war with China, as the White House confirmed Thursday that total US tariffs on Chinese imports now stands at 145 per cent, CNBC reported.
The move follows a new executive order from Donald Trump raising tariffs to 125 per cent, up from 84 per cent. It also includes an additional 20 per cent tariff specifically targeting fentanyl-related imports, previously imposed on China, pushing the cumulative tariff rate up’.
Trump on Wednesday reversed his sweeping tariffs on most nations for at least 90 days. However, he ramped up pressure on China, on which the pause does not apply, further escalating a high-stakes confrontation between the world’s two largest economies, who have traded tit-for-tat tariff hikes repeatedly over the past week.
Beijing: “Door remains open, but not to threats”
Meanwhile, China refused to back down against America’s aggression, and its 84 per cent tariffs on US imports came into effect at 12.01 pm on Thursday, according to the Chinese state news agency, Xinhua.
China has vowed to resist what it calls “coercive” tactics. A Chinese Ministry of Commerce spokesperson reiterated Thursday that while Beijing remains open to dialogue, it will only negotiate on the basis of mutual respect and equality.
“Pressure, threats, and coercion are not the right way to deal with China,” said the spokesperson, adding that China’s response would continue “to the end” if provoked.
In a show of defiance, China’s foreign ministry accused the US of “bullying” and warned that Trump’s approach would end in failure.
Trade war
The looming slugfest between the world’s two largest economies is casting a dark shadow over global trade, with analysts raising the spectre of an American recession.
China and the United States edged dangerously close to a full-blown trade war on Tuesday after President Donald Trump announced a staggering 104 per cent tariff on all Chinese imports. Locked in an escalating showdown, neither side showed signs of backing down — with Beijing vowing to resist US pressure “to the end.”
Trump initially imposed a 34 per cent tariff on Chinese goods, which was swiftly met with an equivalent retaliatory measure by Beijing. In response, the US added another 50 per cent in duties. When combined with earlier levies from February and March, the total tariff burden on Chinese imports under Trump’s second term now stands at 104 per cent, bringing fears of a near-embargo scenario.
In February, Donald Trump slapped a 10 per cent tariff on all Chinese goods with no carve-outs, citing Beijing’s alleged role in fuelling illegal immigration and facilitating the flow of fentanyl into the United States. Last month, he doubled those rates — a move that sent shockwaves through global markets and deepened already strained US-China relations.
China, which was America’s second-largest source of imports last year, shipped $439 billion worth of goods to the US, compared to $144 billion in American exports to China. The rising tariffs now threaten to hit domestic industries hard, with businesses warning of cost surges, layoffs, and reduced competitiveness.
Source: The Indian Express
--Agencies
