Beijing increased its tariffs for US imports to 125 percent on Friday and met against the decision of US President Donald Trump to increase the duties for Chinese goods to 145 percent, and increased the shares in a trade war that increases global supply chains. The countermeasures come into force on Saturday.
The hike takes place after the white house has been able to keep the pressure on the worldwide number 2 and the second largest provider of US imports by increasing it for an additional tariff after most of the “mutual” tasks were imposed on dozens of other countries for 90 days during the break.
“The US introduction of unusually high tariffs in China is severely violating the rules for international and economic trade, fundamental economic laws and common sense and is completely one -sided bullying and compulsion,” said China’s Ministry of Finance in a statement.
Beijing stated that this would be the last time when the United States agreed, Trump should take over his duties higher. But it left the door open for China to turn to other types of retaliation.
“Even if the United States continued to impose even higher tariffs, this would not have economic importance and would decrease as a wit in the history of the global economy,” said the finance ministry.
The US China trade war is in full swing, whereby no side shows signs of the back. Andrew Chang explains how China is positioned to absorb the shock of the US tariffs and what this global economic disorder could mean for their place in the world order. Pictures of Getty Images, the Canadian press and Reuters.
Trump said reporters in the White House on Thursday that he thought the United States could do a deal with China and said he respected Chinese President Xi Jinping.
“In a real sense, he was a friend of mine for a long time, and I think that in the end we will work out something that is very good for both countries,” he said.
In his first public comments on Trump’s tariffs, XI announced Spanish Prime Minister Pedro Sanchez during a meeting in Beijing on Friday that China and the European Union should “lean mutual bullying together”, reported China’s state news agency Xinhua.
“There are no winners in a trade war,” the Chinese leader told his guest and added that the second largest economy in the world and the 27-member European merchant block could help to maintain “the global rules”.
US chip maker that the outsource production of China’s retaliation tariffs for American imports of China is freed, according to a message from the China Semiconductor Industry Association (CSIA) on Friday. In view of the highly specialized and multific nature of chip supply chains, uncertainty within the industry would be uncertainty about how tariffs for chip imports would be used.
For US chip designers such as Qualcomm and AMD, which have been outsourced to manufacture at the Taiwanese chipmaking giant -SMC, the Chinese customs authorities will classify the origin of these chips as Taiwan, according to Eetop, an information platform and a forum for Chinese chip makers.
This means that companies based in China that import such chips are not forced to pay China’s retaliation duties for US imports, Eetop said on his Wechat account.
Beijing has long since poured subsidies to strengthen its home production of tire music, which are often called Legacy halcovers.
“China’s liberation for outsourced US chip makers seems to be a calculated step to maintain economic stability and to promote foreign investments in local production,” said Michael Ashley Schulman, Chief Investment Officer at Laufen Point Capital.
Vietnam, Japan are preparing to hire the white house
Xi will visit Vietnam from April 14th to 15th and Malaysia and Cambodia from April 15th to 18th, the State news agency from State Run announced on Friday after the Chinese president undertook to deepen the “all-round cooperation” with the neighbors of China.
In a breathtaking reversal, Trump temporarily said on Wednesday the powerful duties that he had just imposed dozens of other countries while increasing the pressure on China.
Trump took a 90-day break for the “Liberation Day” tariffs and instead put a basic tariff of 10 percent for more than 75 countries.
Several other Asian countries, including Vietnam, looked at some of the highest tariffs before the break.
In the hope of avoiding the punishment of US tariffs, Vietnam is willing to send the Chinese goods via its territory to the USA and will tighten control over sensitive exports to China, according to a person who is familiar with the matter and a government document observed by Reuters.
Vietnam was hit as part of Trump’s Salve with a 46 percent tariff. While the tariff was suspended for 90 days, the two countries agreed to start talks after a Vietnamese deputy prime minister had met with the US sales representative on Wednesday.
Export-dependent Vietnam hopes that the tasks will be reduced to an area of 22 to 28 percent, if not lower, three people with knowledge of the matter towards Reuters.
The “mutual” tariff imposed in Japan was reduced to the universal rate of 10 percent during the 90-day break. A waste of 25 percent continues to apply to automotive imports.
The stock markets closed sharply on Thursday after US President Donald Trump had clarified a combined 145 percent collective bargaining course against China. The constant chaos has made Beijing angry and triggered more accusations of deliberate market manipulation.
The Japanese Prime Minister Shigeru Ishiba set up a task force on Friday to monitor trade negotiations with the USA under the direction of the close consultant and the Minister of Economic Affairs Ryosei Akazawa, who, according to domestic media, will visit the next week in Washington.
Akazawa will get to know the US Finance Minister Scott Bessent and the US sales representative Jamieson Greer on April 17 for tariff discussions, the public broadcaster NHK reported on Friday.
