(AFP) – China told Washington on Wednesday to “stop threatening and blackmailing” after US President Donald Trump said it was up to Beijing to come to the negotiating table to discuss ending their trade war. Trump has slapped new tariffs on friend and foe but has reserved his heaviest blows for China, with 145 percent on many Chinese imports even as Beijing has retaliated with levies on US goods of 125 percent.
“If the US really wants to resolve the issue through dialogue and negotiation, it should stop exerting extreme pressure, stop threatening and blackmailing, and talk to China on the basis of equality, respect and mutual benefit,” foreign ministry spokesman Lin Jian said. “China’s position has been very clear. There is no winner in a tariff war or a trade war,” Lin said. “China does not want to fight, but it is not afraid to fight.”
This year, Trump has imposed an additional 145 percent tariff on many goods from China, stacking atop duties from previous administrations. Trump initially imposed 20 percent tariffs on imports from China over its alleged role in the fentanyl supply chain, then added 125 percent over trade practices that Washington deems unfair. His administration has, however, given temporary reprieve for certain tech products — like smartphones and laptops — from the latest levy. The White House said Tuesday it was up to Beijing to make the first move towards ending the dispute, which economists warn could cause a global recession. “The ball is in China’s court. China needs to make a deal with us. We don’t have to make a deal with them,” said a statement from Trump read out by Press Secretary Karoline Leavitt.
China on Wednesday said its economy grew a forecast-beating 5.4 percent in the first quarter as exporters rushed to get goods out of factory gates ahead of the US levies. “The escalation happening in April is going to be felt in the second-quarter figures as the tariffs will send stateside firms looking to other suppliers, impeding Chinese exports and slamming the brakes on investment,” Heron Lim from Moody’s Analytics told AFP.
Japan’s envoy for talks slated for Wednesday in Washington said meanwhile that he was optimistic of a “win-win” outcome for both countries. Ryosei Akazawa, who was due to meet US Treasury Secretary Scott Bessent, said he would “protect our national interest.” On Wednesday Honda said it will shift production of its hybrid Civic model from Japan to the United States, although this represents a very small part of its global output. The rationale behind the decision “is not a single issue,” a spokesman for the Japanese firm said. “The decision is based on the company’s policy since its foundation that we produce cars where the demand is.”
South Korea, another major exporter in particular of semiconductors and cars, said that finance minister Choi Sang-mok would meet Bessent next week. “The current priority is to use negotiations… to delay the imposition of reciprocal tariffs as much as possible and to minimise uncertainty for Korean companies operating not only in the US but also in global markets,” Choi said Tuesday.
Since the start of the year, Trump has imposed steep duties on imports from China, alongside a 10 percent “baseline” tariff on many US trading partners. His administration recently widened exemptions from these tariffs, excluding certain tech products like smartphones and laptops from the global 10 percent tariff and latest 125 percent levy on China. Chip stocks across Asia slumped after Nvidia said it expects a $5.5-billion hit due to a new US licensing requirement on the primary chip it can legally sell in China. Trump also ordered a probe Tuesday that may result in tariffs on critical minerals, rare-earth metals and associated products such as smartphones.
burs-stu/rsc – Sam Davies with Danny Kemp and Beiyi Seow in Washington
© 2024 AFP
