China has pledged to vigorously safeguard its interests in light of substantial new tariffs imposed by the United States and cautioned that these trade barriers could impact the broader relationship between the two economic giants.
President Joe Biden recently announced plans to escalate tariffs on imports from China, targeting goods totaling $18 billion, including electric vehicles (EVs) and various other products, over the next two years.
The White House cited the need to shield American workers and businesses from China’s alleged unfair trade practices, such as flooding global markets with artificially low-priced exports.
In response, China’s Commerce Ministry firmly denounced the new tariffs, stating that they contradict President Biden’s earlier commitments to refrain from stifling China’s development or seeking to sever ties.
Under the new measures, tariffs on imported Chinese EVs will skyrocket from 27.5% to 100%, intended to counteract Beijing’s strategy of encouraging aggressive pricing by domestic EV manufacturers while imposing a 40% tariff on US car imports.
In addition to EVs, increased tariffs will apply to various imports from China, including steel, aluminum, semiconductors, battery components, critical minerals, solar cells, cranes, and medical products.
China’s foreign ministry spokesperson emphasized that China opposes unilateral tariff imposition, vowing to take all necessary steps to protect its legitimate rights and interests.
Amid growing global trade tensions, China’s significant trade surplus with goods, nearing $1 trillion, has fueled concerns in the United States and Europe. The Biden administration and EU officials suspect Beijing of addressing overcapacity issues in its slowing economy by dumping excess products on international markets.
In response to queries, Chinese officials underscored the growth of China’s new energy sector, emphasizing technical innovation, complete industrial and supply chains, and market competition as driving forces behind its advancements, dismissing claims of reliance on subsidies.
As trade tensions continue to escalate, global leaders, including those from the Group of Seven, are expected to discuss strategies to safeguard their industries at an upcoming summit, highlighting the intensifying economic dynamics between major players on the world stage.
