BANGKOK | China again vowed to “fight to the end” Wednesday in an escalating trade war with the U.S. as it announced it would raise tariffs on American goods to 84% from Thursday.
Beijing also added an array of countermeasures after U.S. President Donald Trump raised the total tariff on imports from China to 104%.
“If the U.S. insists on further escalating its economic and trade restrictions, China has the firm will and abundant means to take necessary countermeasures and fight to the end,” the Ministry of Commerce wrote in a statement introducing its white paper on trade with the U.S.
The government declined to say whether it would negotiate with the White House, as many other countries have started doing.
On Friday, China announced a 34% tariff on all goods imported from the U.S, export controls on rare earths minerals, and a slew of other measures in response to Trump’s “Liberation Day” tariffs. Trump then added an additional 50% tariff on goods from China, saying negotiations with them were terminated.
So far, China has not appeared interested in bargaining. “If the U.S. truly wants to resolve issues through dialogue and negotiation, it should adopt an attitude of equality, respect and mutual benefit,” said Ministry of Foreign Affairs spokesman Lin Jian Wednesday.
The paper says that the U.S. has not honored the promises it made in the phase 1 trade deal concluded during Trump’s first term. As an example, it said that a U.S. law that would ban TikTok unless it is sold by its Chinese parent company violates a promise that neither would “pressure the other party to transfer technology to its own individuals.”
Trump signed an order to keep TikTok running for another 75 days last week after a potential deal to sell the app to American owners was put on ice. ByteDance representatives called the White House to indicate that China would no longer approve the deal until there could be negotiations about trade and tariffs.
The paper also argued that taking into account trade in services and U.S. companies’ domestic Chinese branches, economic exchange between the two countries is “roughly in balance.”
It says that China had a trade in services deficit with the U.S. of $26.57 billion in 2023, which is composed of industries like insurance, banking and accounting. Trump’s tariffs were designed to close trade deficits with foreign countries, but those were calculated only based on trades in physical, tangible goods.
“History and facts have proven that the United States’ increase in tariffs will not solve its own problems,” said the statement from the Chinese commerce ministry. “Instead, it will trigger sharp fluctuations in financial markets, push up U.S. inflation pressure, weaken the U.S. industrial base and increase the risk of a U.S. economic recession, which will ultimately only backfire on itself.
___
AP researcher Yu Bing and producer Liu Zheng contributed to this report from Beijing.
I was reading several stories about Trump’s tariff scheme. First, his goal to eliminate the trade deficit is impossible to achieve without inflation. It’s a pollyanna view that completely ignores specialization. For instance, Vietnam specializes in garment manufacturing. We can’t move garment production here without major price increases. This was more telling from the Associated Press: …He (Trump)also wants revenues from tariffs to offset his income tax cut plans… Again, the increase in prices from a misguided attempt to eliminate the trade deficit will be paid by consumers. Who do you think pays the highest ratio of their income on consumption? Of course, the working poor, then the middle class. The rich invest or save the majority of their income. So, the price increase from the unnecessary tariff war is a defacto regressive tax. That is, Trump will make the working poor pay for his tax breaks that are set to benefit corporations and the wealthy! Call it reverse Robin Hood. Take from the working poor and give more than ever to the rich! It’s a classic shell game – just perfect for a Flim flam man!