'The Sky Won't Fall': China Shrugs Off Donald Trump's Tariffs As Exports Surge

(MENAFN- Live Mint) China has brushed aside concerns over the impact of US tariffs on its exports, even as tensions between Beijing and Washington continue to unsettle global markets. Chinese official Lyu said,“The sky won't fall” for Chinese exports, adding,“These efforts have not only supported our partners' development but also enhanced our own resilience.”

Despite the latest tariff hike, China's customs department said the country's“vast domestic market” would serve as a stabilising force.“China will turn domestic certainty into a buffer against global volatility,” the customs report noted.

China's exports saw a sharp rise last month, reflecting a likely rush to ship goods ahead of Donald Trump's“liberation day” tariffs, which risk escalating into a full-scale trade war between the world's two biggest economies.

Stock markets climbed on Monday, buoyed by signs of easing restrictions on electronics.

Escalating trade war: Tariff battle continues

The tit-for-tat trade war escalated as China imposed 125% retaliatory tariffs on US goods , countering the 145% US border taxes on Chinese exports . The ongoing dispute follows Donald Trump's April 2 announcement of sweeping tariffs on all trading partners , which he later partially walked back-except in China's case .

While some exemptions were offered for electronics over the weekend, US Commerce Secretary Howard Lutnick clarified that smartphones, laptops, and semiconductors could still face future levies.“These devices would be included in the semiconductor tariffs which are coming in probably a month or two,” Lutnick said.

Trump reaffirmed the tough stance in a post on Truth Social, writing:“NOBODY is getting 'off the hook',” and warned that the current 20% smartphone levies could still rise.

Xi:“There are no winners in a trade war”

Meanwhile, Chinese President Xi Jinping , who began a Southeast Asian diplomatic tour, called for a return to cooperation. In a joint editorial published in Vietnamese and Chinese state media, Xi wrote:“There are no winners in a trade war, or a tariff war.”

He added,“Our two countries should resolutely safeguard the multilateral trading system, stable global industrial and supply chains, and open and cooperative international environment.”

China's warning on impact of US tariffs

On April 12, China's Commerce Minister, Wang Wentao, raised concerns over the growing tension in the trade war between the US and China, stating that the US's reciprocal tariffs could“inflict serious harm” on poorer nations . This statement highlights the negative global impact of the tariff increases as both nations continue to exchange punitive levies.

Call for US to cancel tariffs

On April 13, Beijing has urged the Trump administration to take decisive action to de-escalate the situation. A Chinese official called for the complete cancellation of the reciprocal tariffs imposed by the US , which have now reached a staggering 145%. A spokesperson from China's Commerce Ministry, in a statement quoted by AFP, said,“We urge the US to take a big step to correct its mistakes, completely cancel the wrong practice of 'reciprocal tariff' and return to the right path of mutual respect.”

No talks planned, despite optimism

Despite escalating tensions, the White House says President Trump remains“optimistic” about reaching a trade deal. However, US Trade Representative Jamieson Greer said on CBS that“we don't have any plans” for talks between Trump and Xi.

Greer added that the administration is in negotiations with several other countries.“We're working around the clock, day and night, sharing paper, receiving offers and giving feedback,” he said.

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Following a sharp drop in US stock markets on April 5, triggered by China's announcement of retaliatory tariffs, Chinese Foreign Ministry spokesperson Guo Jiakun urged Washington to rethink its approach .“Now is the time for the U.S. to stop doing the wrong things and resolve the differences with trading partners through equal-footed consultation,” Guo posted on social media.

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