A US President Donald Trump announced tariffs on major trading partners China, Canada and Mexico, Beijing condemned the move and vowed to take “countermeasures to defend its legitimate rights and interests.”
The Chinese foreign ministry, in an official statement, said that the US tariff violates global trade rules and could disrupt cooperation on drug control efforts between the two countries.
The ministry stated, "The US has levied a 10 percent additional tariff on Chinese imports under the pretext of the fentanyl issue. China firmly deplores and opposes this move and will take necessary countermeasures to defend its legitimate rights and interests. China is one of the world's toughest countries on counternarcotics both in terms of policy and its implementation. Fentanyl is an issue for the US."
“China's position is firm and consistent. Trade and tariff wars have no winners,” China’s foreign ministry said. “The US’s unilateral tariff hikes severely violate World Trade Organisation (WTO) rules. This move cannot solve the US's problems at home and more importantly, does not benefit either side” it added.
The response stopped short of the immediate escalation that had marked China's trade showdown with Trump in his first term as president and repeated the more measured language Beijing has used in recent weeks, according to a report by Reuters.
Trump on Saturday ordered 25 percent tariffs on Canadian and Mexican imports and 10 percent on goods from China, saying Beijing needed to stanch the flow of fentanyl, a deadly opioid, into the United States.
China's commerce ministry said in a statement that Trump's move "seriously violates" international trade rules, urging the U.S. to "engage in frank dialogue and strengthen cooperation".
How much trade is at stake?
Trade between China and the United States -- the world's two largest economies -- is vast, totalling more than $530 billion in the first 11 months of 2024, according to Washington.
According to the Peterson Institute of International Economics (PIIE), China is the dominant supplier of goods from electronics and electrical machinery to textiles and clothing, AFP reported.
Also Read: Mexican president orders retaliatory tariffs against US
But a yawning trade imbalance -- $270.4 billion for January to November last year -- has long raised hackles in Washington. So has China's vast state support for its industries, sparking accusations of dumping, as well as its perceived mistreatment of US firms operating in its territory.
But China's economy remains heavily reliant on exports to drive growth despite official efforts to raise domestic consumption -- making its leaders reluctant to change the status quo.
Canada, Mexico order retaliatory tariffs
Mexican President Claudia Sheinbaum ordered her economy minister to implement tariff and non-tariff measures to defend her country's interests, after the US slapped across-the-board duties on goods coming from Mexico.
In a lengthy post on X, Sheinbaum stressed her government does not seek confrontation with its northern neighbor but collaboration and dialogue.
Also Read: Canada's Trudeau announces counter tariffs in retaliation to Trump's measures
Meanwhile, Prime Minister Justin Trudeau said Canada will retaliate against President Donald Trump's new tariffs with 25 percent levies on a raft of US imports, warning Americans that Trump's actions would have real consequences for them.
As relations between the long-time allies who share the world's longest land border reached a new low, Trudeau told a news conference he was slapping tariffs on C$155 billion ($107 billion) of U.S. goods. Those on C$30 billion will take effect on Tuesday, the same day as Trump's tariffs, and duties on the remaining C$125 billion in 21 days, he said.
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