Donald Trump announced tariffs on China, as well as other countries around the world, and it has now replied saying it is ready for “a trade war or any other type of war” in a serious escalation
China says it ready for “a trade war or any other type of war” after Donald Trump announced stiff tariffs.
The US president has caused major ruptions to markets around the world by announcing that he will impose tariffs to competitors including China who have already said they will hit back with their own measures.
China responded to new US tariffs by announcing it will introduce additional tariffs of up to 15% on imports of key US farm products, including chicken, pork, soy and beef, and expanded controls on doing business with key US companies.
And now it has hit back by saying it is ready for war in a serious escalation as it also said the US should try and tackle its fentanyl drugs issue with dialogue with China and not “threats”. Officials in China are angry that the Trump administration has used illegal street fentanyl as justification for the new trade tariffs.
The Chinese Embassy in the US said: “If the US truly wants to solve the #fentanyl issue, then the right thing to do is to consult with China by treating each other as equals. If war is what the U.S. wants, be it a tariff war, a trade war or any other type of war, we’re ready to fight till the end.”
The tariffs announced by the Commerce Ministry in Beijing will take effect from March 10, though goods already in transit will be exempt until April 12. They follow Trump’s order to raise tariffs on imports of Chinese products to 20% across the board. A range of Chinese goods were already subject to 10-25% tariffs levied by Trump during his first term.
Trump also imposed 25% taxes, or tariffs, on Mexican and Canadian imports, though he limited the levy to 10% on Canadian energy. The new 20% tariff on Chinese goods is double the rate he imposed last month.
In an address to Congress on Tuesday night, Trump repeated two different explanations for his tariffs on Canada and Mexico where he also used the problem of fentanyl abuse in the US as an argument. He cited the trade deficits the US has with both countries, but also said, “they’ve allowed fentanyl to come into our country at levels never seen before, killing hundreds of thousands of our citizens.”
Trump acknowledged there could be “a little disturbance” from the tariffs, a possible nod to the stock market’s sharp falls in the past two days as well as concerns about inflation. “It may be a little bit of an adjustment period,” he said after claiming that farmers would benefit from reciprocal tariffs on countries that have tariffs on US exports. “You have to bear with me again and this will be even better.”
The president is abandoning the free trade policies the United States pursued for decades after World War II. He argues that open trade cost America millions of factory jobs and that tariffs are the path to national prosperity. He rejects the views of mainstream economists who contend that such protectionism is costly and inefficient.
Import taxes are “a very powerful weapon that politicians haven’t used because they were either dishonest, stupid or paid off in some other form,” Trump said Monday. “And now we’re using them.”
