Trump puts China in crosshairs

Photo: The Canadian Press

BANGKOK — President Donald Trump raised the tariff on Chinese imports to 125% on Wednesday, hours after China boosted the duty on American goods to 84% in an escalating battle that threatens to disrupt trade between the world’s two largest economies.

Citing a lack of respect, Trump set China apart from other countries. He said in a social media post that he is pausing his so-called “reciprocal tariffs” on many other trading partners because they had responded by reaching out for talks rather than retaliating.

The tit-for-tat hikes between the U.S. and China are the latest in an ongoing trade war that threatens to raise prices for consumers in America and derail China’s attempts to reinvigorate its sluggish economy. The response from the Chinese government signals its determination not to bend to Trump’s pressure, despite the risks.

“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,” China’s Ministry of Commerce said before announcing its latest tariff hike.

In Washington, White House press secretary Karoline Leavitt said: “When you punch at the United States of America, President Trump is going to punch back further.”

China is a major exporter to U.S. but no longer No. 1

The United States sent a record $199 billion in exports to China last year, while China exported $463 billion in goods and services to the United States, third behind Mexico and Canada, according to the U.S. Commerce Department.

Top U.S. exports to China in 2024 included soy beans, aircraft, pharmaceuticals and semiconductors. In the other direction, mobile phones, computers, toys and clothing were among major imports from China. The manufacturing giant was the top source of U.S. imports as recently as 2022, but it has lost ground to America’s neighbours amid heightened tensions with the United States.

The European Chamber of Commerce in China accused the U.S. of rolling back many of the principles that have underpinned its approach to trade and investment. It said that Trump’s tariffs would have a significant impact on European companies exporting from China to the U.S., forcing them to rethink their business models and supply chains.

“This will lead to a substantial increase in operational costs and inefficiencies, and ultimately higher prices for consumers,” it said.

No ‘easy path’ to restarting U.S.-China trade talks

Though the U.S. and China may want to find a way back to the negotiating table, “this won’t be an easy path to navigate with both countries doubling down and bilateral engagement at a virtual standstill,’’ said former U.S. trade official Wendy Cutler, a vice-president at Asia Society Policy Institute.

China does not appear interested in bargaining, as some other countries have started doing.

“If the U.S. truly wants to resolve issues through dialogue and negotiation, it should adopt an attitude of equality, respect and mutual benefit,” Foreign Ministry spokesperson Lin Jian said.

The Chinese Ministry of Culture and Tourism issued a travel advisory asking its citizens to evaluate the risks of visiting the U.S. as tourists and to exercise caution. The advisory, which came shortly after the announcement of China’s latest tariff hike, cited the deterioration in economic and trade relations as well as the “safety situation” in America.