Beijing Responds to White House Threats of Higher Tariffs
In response to the White House’s recent announcement of potential tariffs on Chinese exports ranging up to 245 percent, China’s Ministry of Foreign Affairs has stated that they will not be swayed by what they perceive as a “tariff numbers game” played by US President Donald Trump.
The White House had earlier released a fact sheet outlining these latest tariff figures. The document details not only Trump’s recently imposed 125 percent tariff and prior 20 percent tariff for alleged non-compliance with restrictions on fentanyl exports to the United States, but also proposes additional duties ranging from 7.5 percent to 100 percent following national security reviews under the Trade Act of 1974.
Beijing’s stance, as expressed on Thursday, aligns with previous comments by the Ministry of Finance, which dismissed Trump’s incremental increases in tariffs as lacking any real economic impact, essentially labeling them a “joke.”
Despite imposing tariffs of up to 125 percent on US goods, China has implemented additional non-tariff retaliatory measures, including restrictions on the release of Hollywood films.
Economists have warned that without a relaxation of these tariffs, trade between the US and China could come to a near standstill due to the steep increase in costs.
The World Trade Organization has projected a 0.2 percent decline in global trade for 2025 under current conditions, noting this is nearly three percentage points less than a baseline scenario with lower tariffs. The WTO also indicated that the “reciprocal tariffs” initiated by Trump, currently postponed until July, could exacerbate the decline in the global goods trade and particularly affect the least-developed countries.
The UN’s Trade and Development (UNCTAD) office has revised its 2025 global growth prediction from 2.5 percent to 2.3 percent. It has highlighted the significance of growth staying below the 2.5 percent threshold, which may be indicative of a looming global recession.
