China slams new US tariffs: 'The market has spoken'
China on Saturday strongly criticized new tariffs imposed by former US President Donald Trump, saying “the market has spoken” with a sharp global downturn. Beijing called on Washington to return to the negotiating table and abandon the use of tariffs as a tool of “economic coercion.
The Chinese government called on the US to “stop weaponizing tariffs” and stop undermining China’s legitimate right to development, the state news agency Xinhua reported. The Chinese government stressed that it would “continue to take resolute measures” to protect its national interests.
The move came after Trump imposed a 34% tariff on Chinese goods, bringing the total for the year to 54%. The US also closed a trade loophole that allowed low-value parcels from China to enter the US duty-free, a move that is said to directly affect millions of e-commerce transactions.
China responded immediately by imposing a similar 34% tariff on US goods and tightening exports of rare earths – a strategic high-tech material. The retaliatory measures sent global stock markets tumbling further, with the S&P 500 index ending the week down 9% – its worst performance since the pandemic.
The market has spoken,” Chinese Foreign Ministry spokesman Guo Jiakun wrote on Facebook, along with a chart showing the US stock market’s plunge over the weekend.
Meanwhile, Hong Kong – as a special administrative region – said it would not take its own retaliatory measures. Financial Secretary Paul Chan stressed that the city would maintain a “free and open” trade policy to protect its role as a global financial centre.
Our advantage is the free flow of capital and operating as a free port,” Chan told RTHK. “The rules-based multilateral trading system remains our core.
Many Chinese industry associations, from the metal and textile industries to the electronics and food industries, have also issued a joint statement criticizing the new US trade policies. The China Chamber of Commerce called on food and agricultural enterprises to strengthen cooperation to tap domestic and international markets.
Amid escalating tensions, Beijing called on the US to return to the negotiating table in the spirit of “equal consultation” and stressed that it will continue to safeguard China’s sovereignty, security and development rights at all costs.