New Delhi: The global trade war, triggered by Donald Trump’s sweeping tariffs, is heating up.
China on Friday announced additional tariffs of 34% on all US goods entering the country as a countermeasure to what it called the US President’s “unilateral bullying practice”.
It’s the first response by any ally or adversary of the US, raising risks of an all-out trade war.
China’s State Council Tariff Commission, which issued the retaliatory tariffs, said US actions were “not in line with international trade rules, seriously undermines China’s legitimate rights and interests, and is a typical unilateral bullying practice”.
Besides tariffs, China also revealed plans to add 16 US entities to an export control list and classify 11 others as “unreliable” entities.
“The purpose of the Chinese government’s implementation of export controls on relevant items in accordance with the law is to better safeguard national security and interests, and to fulfil international obligations such as non-proliferation,” China’s Commerce Ministry said in a statement.
On what he called ‘Liberation Day’, Trump released detailed list of tariffs to be imposed by the US on various countries, including an additional 34% reciprocal tariffs, in addition to the existing 20% duties on all Chinese imports that he had already slapped in two rounds (in February and March) since taking oath as US President for his second term.
China had earlier responded with moderate retaliatory tariffs, targeting US agricultural products, fuel, and select American firms, while strengthening its export controls.
According to Trump, China imposes 67% tariffs on American imports, a figure that includes the impact of currency manipulation and trade barriers.
Canada hits back with auto levies
Amid rumblings against Trump across the globe, Canadian Prime Minister Mark Carney said that reciprocal tariffs imposed by the US had made the global economy “fundamentally different”.
Though Canada was excluded from reciprocal tariffs announced on Wednesday by Trump, duties on automobiles made in Canada took effect from Thursday.
Responding to that, Carney announced retaliatory levies on automobiles imported from America.
Canada announced 25% tariffs on fully-assembled vehicles imported into Canada from the US that were not compliant with the Canada-United States-Mexico Agreement (CUSMA).
Also, 25% tariffs were imposed on non-Canadian and non-Mexican content of CUSMA compliant fully assembled vehicles imported into Canada from the United States.
