China warns new US tariffs to ‘severely’ impact relations
- In Military & Strategic Affairs
- 10:45 PM, May 14, 2024
- Myind Staff
China has vowed to firmly protect its interests amidst significant new tariffs imposed by the US, warning that these trade barriers could severely impact the broader relationship between the two major economic powers.
“The increase in … tariffs by the United States contradicts President Joe Biden’s commitment to ‘not seek to suppress and contain China’s development’ and ‘not to seek to decouple and break links with China,’” China's commerce ministry said. “This action will seriously impact the atmosphere of bilateral cooperation.”
Beijing urged the US to "promptly correct its erroneous actions and revoke the additional tariff measures imposed on China."
On Tuesday, President Joe Biden announced plans to gradually increase tariffs on $18 billion worth of imports of Chinese electric vehicles and various other goods over the next two years.
Electric vehicles imported from China will witness a tariff hike of more than fourfold, rising from 27.5% to 100%. This move aims to counter Beijing's strategy of promoting excessively low pricing by domestic EV manufacturers while imposing a 40% tariff on imports of cars from the US.
In addition to EVs, increased tariffs will apply to imports of Chinese steel and aluminium, legacy semiconductors, battery components, critical minerals, solar cells, cranes and medical products.
The White House said the measures were designed to protect American workers and businesses in the face of China’s unfair trade practices, including “flooding global markets with artificially low-priced exports.”
The decision comes as President Joe Biden gears up for a re-run of his 2020 contest with Republican rival Donald Trump in November’s election, with officials criticising Trump’s record on trade as they made the announcement.
This decision follows a review of tariffs imposed during a trade dispute between Washington and Beijing. Former President Trump had imposed levies on around $300 billion worth of Chinese goods during that time.
The so-called Section 301 investigation was the primary tool the Trump administration used to justify tariffs, and the US Trade Representative is required to look into the impact of the levies after four years.
Reacting to the announcement, Beijing said it “resolutely opposes this and makes stern representations”.
It said Washington was “politicising and instrumentalising economic and trade issues, in a typical case of political manipulation”.
“China expresses its strong dissatisfaction with this,” the commerce ministry said.
The 301 tariffs, it added, are “not in line with the spirit of the consensus reached by the two heads of state”, referring to a meeting between Presidents Xi Jinping and Biden last year.
“China will take resolute measures to defend its own rights and interests,” it pledged.
Image source: Livemint
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