China reacts to US tariffs, but it would like to engage in talks

“China will fight to the bitter end of any trade war,” the foreign ministry spokesperson in Beijing declared after China has announced tariffs of tit-for-tat on imports of agricultural goods by the US.

This was just minutes after the introduction of a new 10 percent US tax on Chinese imports, which went into effect on Tuesday, which is in addition to tariffs already in place that were in place prior to Trump’s presidency and the ones announced last month.

However, China’s latest retaliatory actions are a retaliatory opening and not a direct hit.

It demonstrates some strength and is able to hurt certain parts in the United States, but also allows room for negotiation or even escalate if needed.

“We advise the US to put away it’s bullying face and return to the right track of dialogue and co-operation before it is too late,” the spokesperson for the foreign ministry Lin Jian said.


The second set of tariffs that the two countries have placed on each the other since February. However, this time China is targeting Donald Trump where it has the potential to harm him farmers who are among Trump’s most loyal supporters.

Nearly 78% of the farming-dependent counties across the US have backed Mr. Trump during 2024.

China is one of the largest buyers of produce including pork, chicken, beef and soybeans. Currently, all of these products will have to pay taxes of 10% that will take effect on 10 March.

“The tariffs are broadly negative for US agricultural markets. It is going to have a bearish influence on prices. There are enough corn and soybean supplies in the world for China to make a switch, it is more of an issue for the US, because 30% of US soybeans still go to China,” Ole Houe, of Ikon commodities spoke to Reuters the news agency.

Beijing might be hoping that this will put some kind of pressure upon the Trump administration ahead of any possible talks.

The recent announcements raise the possibility of a complete trade war between the world’s leading two economies. And in a myriad of declarations from the ministry, China is making two things crystal evident.

First, it is ready to to fight.

“Pressure, coercion and threats are not the right way to deal with the Chinese side,” claimed Mr. Lin.

It is also open to discussion.

What are tariffs and what is the reason behind Trump utilizing them?
Beijing isn’t ramping up its rhetoric or tariffs in the same manner as it had done in 2018 during the Trump administration. Then, Beijing imposed a tariff of 25 percent to US soybeans.

“China’s tariffs impact a limited number of US products, and remain below the 20% level. This is by design. China’s government is signalling that they do not want to escalate, they want to de-escalate,” according to Even Pay, an analyst for Trivium China.

The possibility of talks was mentioned in the last month.

The White House said there would be a meeting between the president Xi with Donald Trump. It never happened.

What happens when these talks begin and who will be the first move?


Reuters
A brand-new 10 percent US tax to Chinese imports that went into the market on Tuesday is likely to be detrimental to Beijing
China is likely to not decide to lead the way. It doesn’t like to be seen as a subservient to Washington.

In contrary with Canada as well as Mexico, Beijing has not issued new measures to curb the trafficking of fentanyl. Beijing has simply reiterated its previous assertions that the fentanyl issue is an “US problem” and that China has the most strict drug laws in the world.

On Tuesday on Tuesday, China’s State Council released a White Paper that is titled “Controlling Fentanyl-related substances – China’s contribution.”

It details the steps Beijing claims it has taken to tackle Fentanyl-related criminals and the chemicals that are used as precursors in the production of the drug. Beijing also states that it will continue “diligently fulfilling international drug control obligations”.

Thus, even though China hasn’t rung its phone and called Washington the document is part of the message from China that appears to say that we’re already taking action in the fight against Fentanyl.


Financial worries
Even though the statement says that China “will not yield” the latest tariffs are sure to be very stinging.

The 20% tax that is imposed on the entire range of Chinese items is as a result of a string of tariffs Trump has imposed during his first term, on hundreds of billions of dollars worth of Chinese imports. China’s people are already worried about a slowing economy.

Many delegates are congregating in the capital city this week to attend the annual session of parliament that will largely concentrate upon the economic situation.

The prices of houses are falling but youth unemployment is still high. A trade war between the US could cause more financial concerns for consumers and businesses across the nation at a moment when there is a growing demand from the Communist Party wants people to spend money to allow the economy expand.

However, Beijing is also likely to consider an opportunity because Donald Trump sows uncertainty in his international allies.

It is possible to put the blame for future economic problems on Washington’s shoulders and claim that it’s entirely the fault that lies with the US for having started an economic war.

The state-run news outlet Xinhua has recently released a collection of satirical skits that poke fun at the United States that is prepared to tax its neighbours and allies. The skits depict Washington as a bully, echoing the words of the top leaders from Canada as well as Mexico.

However the Chinese Commerce Ministry has reiterated that it is ready to cooperate with other countries around the globe in order to counter the tariffs of President Trump.

Beijing seems to be searching for allies to join this trade war, while trying to portray Washington as a tyrant who is ready to attack both foes and friends alike.

This all at a time Trump’s ‘America First’ policy has many in Europe in the UK thinking that the world order governed by the United States is in danger.