Tuesday, 02 January 2024 12:17 GMT

Trump says US, China are engaged in ‘trade war’


(MENAFN) US President Donald Trump has stated that Washington and Beijing are effectively engaged in a trade war, describing American tariffs on Chinese imports as essential to protecting the country’s national interests.

Speaking to reporters on Wednesday, Trump was asked whether the absence of a trade deal with Chinese President Xi Jinping could lead to a prolonged trade conflict. He replied, “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.”

Responding to the ongoing standoff, Chinese Foreign Ministry spokesman Lin Jian reaffirmed that “tariff wars and trade wars have no winners” and urged that disputes be resolved “through consultation on the basis of equality, respect, and mutual benefit.”

The latest escalation follows Trump’s threat last week to impose an additional 100% tariff on Chinese products starting in November, after Beijing announced new restrictions on the export of rare-earth minerals — materials critical to advanced technologies and global manufacturing.

While Beijing’s measures were not aimed specifically at the United States, they could severely affect American tech industries that rely heavily on Chinese supply chains.

Earlier in the year, Trump introduced what he called “reciprocal tariffs” on Chinese goods, with some rates exceeding 100%. He later paused the increase to give room for further negotiations — a suspension that will now remain in effect until November 10. The current average tariff rate on Chinese imports sits at around 10%, although several categories face higher duties.

The US president has also demanded that China reduce its purchases of Russian oil, arguing that such transactions contribute to funding Moscow’s military operations. Beijing rejected those comments as “intimidation,” while Moscow maintained that sovereign nations are free to select their own trade partners.

Tensions rose further this week after Trump announced that the US would halt imports of Chinese cooking oil, portraying the move as a direct response to Beijing’s decision to cut back on American soybean purchases.

Despite the mounting friction, US Treasury Secretary Scott Bessent confirmed that Trump and Xi are still expected to meet later this month during the Asia-Pacific Economic Cooperation (APEC) summit in South Korea.

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