Tuesday, 02 January 2024 12:17 GMT

'No Winners In Trade War': Beijing Reacts To Donald Trump's 10% Tariff Threats On Chinese Goods


(MENAFN- Live Mint) China has pledged to defend its 'national interests' against US sanctions, as Donald trump plans to impose tariff hike on China, Mexico and Canada, as part of his strategy to combat the flow of illegal drugs, including fentanyl, to the US.

US President Donald Trump has relaunched the trade war with China, by threatening to impose a 10 per cent duty on imports from Beijing, AFP reported. In his second term, Donald Trump has hinted of imposing a 10% tariff on imports of Chinese-made goods from February 1.

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"We have always believed that there are no winners in a trade war or a tariff war," AFP quoted foreign ministry spokeswoman Mao Ning.

Mao Ning added that Beijing was "willing to maintain communication with the US, properly handle differences, expand mutually beneficial cooperation, and promote the stable, healthy, and sustainable development of China-US relations".

On his second day as US president, Donald Trump informed reporters that he also mulls imposing tariffs on the European Union. "They treat us very, very badly. So they're going to be in for tariffs," Trump said of the EU.“You can't get fairness unless you do that.”

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On China, Donald Trump reiterated his threat to impose a 10 percent duty, saying it was "based on the fact that they're sending fentanyl to Mexico and Canada".

When asked how soon they could be put in place, he said: "Probably February 1st is the date we're looking at."

Mexico, Canada and China are leading sources of US imports, according to official trade data.

China's Export Economy Under Threat?

In a world economic structure that is attempting to move away from the China dependence for import or labour, the Donald Trump 's tariff warning seems concerning for Beijing.

The Trump White House imposed tariffs on imports from China during his first term, citing alleged unfair practices by Beijing.

Also Read | Tariffs will spark retaliation, not a manufacturing renaissance

Trump's successor Joe Biden kept up the pressure with sweeping rules aimed at restricting Chinese access to high-tech chips.

Trump threatened to go even further during his election campaign, vowing even higher tariffs if he won another term in office.

China's economy remains heavily reliant on exports to drive growth despite official efforts to raise domestic consumption.

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