Labelling Donald Trump’s tariff strategy “a joke,” China hit back at the US president’s decision to single out the world’s second-largest economy with 145 per cent duties by levying United States goods with 125 per cent.
“Even if the U.S. continues to impose even higher tariffs, it would no longer have any economic significance and would go down as a joke in the history of world economics,” China’s Finance Ministry said.
“If the U.S. continues to play a numbers game with tariffs, China will not respond,” the ministry said. However, they left open the door to other types of retaliation, warning once again that the country is prepared to fight the US to the end.
The ministry also accused Trump and his administration of violating international economic and trade rules. Nevertheless, it raised tariffs on US imports from 84 per cent to 125 per cent, but not before saying that “US exports to China are no longer commercially viable.”
“The U.S. side’s threat to escalate tariffs against China is a mistake on top of a mistake, once again exposing the American side’s blackmailing nature,” China’s Ministry of Commerce said earlier.
China exporters’ profits are wiped out
Dan Wang, a China expert at Eurasia Group, told Reuters that since Trump levied 35 per cent duties on Chinese goods Chinese exporters’ profits were wiped out.
“Passed that 35 per cent level of tariffs, China shouldn’t export to the US at all. Trump could continue raising tariffs up to 1,000%, but since there is no trade, there is no harm,” Wang added.
“Europe is and will be the most profitable market for China now,” she added.
Given that China is – or now better said – was the third largest buyer of US goods valued of $150 billion in 2024, Trump’s trade war against China might backfire, harming American producers more than the Chinese.
However, Chinese Commerce Minister Wan Wentaoh reiterated his government’s position of leaving the door open if the Trump Administration decides to sit at the table and hold non-threatening negotiations.
