Tuesday, 02 January 2024 12:17 GMT

Trump Confirms U.S. Is at Trade Conflict with China


(MENAFN) President Donald Trump confirmed the United States is currently engaged in a trade war with China, emphasizing that tariffs on Chinese imports are crucial for America’s national security. Speaking to reporters on Wednesday, Trump responded to questions about the potential for a prolonged trade conflict with Beijing, saying: “Well, you’re in one now… We have 100% tariff. If we didn’t have tariffs, we would be exposed as being a nothing… Tariffs are a very important tool for our defense, for our national security.”

Amid rising tensions, Chinese Foreign Ministry spokesman Lin Jian stressed the futility of such confrontations, stating that “tariff wars and trade wars have no winners” and urged both sides to settle disputes “through consultation on the basis of equality, respect, and mutual benefit.”

The escalation comes after Trump last week threatened to impose an additional 100% tariff on Chinese goods starting in November, a response to Beijing’s tightened export restrictions on rare-earth minerals—critical for many US tech companies reliant on these materials.

Earlier this year, Trump had already sharply increased tariffs on China, with some reciprocal duties exceeding 100%, though a temporary suspension allowed trade negotiations to continue. The current general tariff on Chinese imports stands at 10%, with certain products facing higher rates.

In a related move, Trump also pressed China to reduce its purchases of Russian oil, asserting these imports finance Moscow’s military operations. China condemned these comments as “intimidation,” while Russia reaffirmed sovereign rights to choose economic partners.

Further straining relations, Trump announced on Tuesday the US would halt buying cooking oil from China, framing the decision as retaliation against Beijing’s reduced purchases of American soybeans.

Despite these escalating disputes, US Treasury Secretary Scott Bessent confirmed earlier this week that Trump and Chinese President Xi Jinping remain scheduled to meet at the Asia-Pacific Economic Cooperation (APEC) summit in South Korea later this month.

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