The trade war between the United States and China is reaching a new level. Beijing warned on Monday that "firm and reciprocal" countermeasures would be taken against any country that concludes a trade agreement with Washington to the detriment of China. This warning comes as the Trump administration increases pressure on its partners to isolate China, in exchange for exemptions or reductions in customs duties.
The United States is increasing the pressure, and so is China
Since the beginning of April, Washington has imposed historic surcharges on Chinese products, reaching up to 145% on certain imports. Nearly fifty governments have already contacted US authorities to negotiate exemptions, but the White House is demanding in return a reduction in trade with China, which remains the main target of these punitive measures. The Chinese Ministry of Commerce accuses Washington of using these taxes as a blackmail tool to force other nations to limit their trade relations with Beijing. A situation that will not go unchallenged.
China says it will respect the efforts of countries to resolve their disputes with the United States, as long as it does not harm its own interests. But she warns: any agreement reached at her expense will lead to an immediate and equivalent response. Chinese President Xi Jinping, on a trip to Southeast Asia, reaffirmed his country's willingness to defend its rights, in the face of what he calls "unilateral economic harassment." The country also recalled that there was never a "winner in trade wars."
A risk of fragmentation of global trade
This escalation of tensions comes as trade between the world's two leading economic powers is already burdened by reciprocal customs duties exceeding 100%. Chinese manufactured goods, rare earths, American agricultural goods, and technological equipment are particularly affected, threatening to seriously disrupt global trade and increase the risk of stockouts. Beijing's announced response heralds an escalation of the trade war between the two economic powers, with potential consequences for the entire market. An informal meeting of the UN Security Council has also been requested, during which Beijing plans to accuse the United States of bullying.
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