{"id":63995,"date":"2025-02-02T09:14:56","date_gmt":"2025-02-02T09:14:56","guid":{"rendered":"https:\/\/peraltafinancing.com\/business\/finance\/china-threatens-countermeasures-to-combat-trump-tariffs\/"},"modified":"2025-02-02T09:14:56","modified_gmt":"2025-02-02T09:14:56","slug":"china-threatens-countermeasures-to-combat-trump-tariffs","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=63995","title":{"rendered":"China threatens countermeasures to combat Trump tariffs"},"content":{"rendered":"<p> <br \/>\n<\/p>\n<div>\n<p>Unlock the White House Watch newsletter for free<\/p>\n<p class=\"article__content-sign-up-topic-description\">Your guide to what the 2024 US election means for Washington and the world<\/p>\n<p><iframe class=\"article__content-sign-up-iframe close\" scrolling=\"no\" id=\"signUpIframe\" data-prev-url=\"\/register\/in-article-sign-up?ft-content-uuid=eb169eab-dde1-4f1b-a6dd-76d83c31b0c1&amp;newsletter-id=65b8fec772badb00166eafc6\"><\/iframe><\/div>\n<div id=\"article-body\">\n<p>Beijing has hit out at new 10 per cent tariffs imposed by the US on Chinese exports, saying it will \u201ctake necessary countermeasures to defend its rights and interests\u201d as trade tensions between the two powers enter a new phase.<\/p>\n<p>The Ministry of Foreign Affairs said on Sunday that China opposed the tariffs, which it said were introduced \u201cunder the pretext of the fentanyl issue\u201d.<\/p>\n<p>\u201cThe US needs to view and solve its own fentanyl issue in an objective and rational way instead of threatening other countries with arbitrary tariff hikes,\u201d the MFA said.<\/p>\n<p>China\u2019s Ministry of Commerce said it would file a lawsuit with the World Trade Organization.<\/p>\n<p>The additional 10 per cent levies come alongside <a href=\"https:\/\/www.ft.com\/content\/b9101226-edc1-4cde-93ec-186bc95021d7\" data-trackable=\"link\">new 25 per cent tariffs<\/a> on exports from Canada and Mexico, as President Trump embarks on an expanded trade war, following a range of measures imposed on China by the US during his first term.<\/p>\n<p>Trump said the influx of \u201cillegal aliens\u201d and drugs, including the opiate Fentanyl, had created a \u201cnational emergency\u201d that justified the tariffs.<\/p>\n<p>During last year\u2019s election campaign, he had warned of tariffs as high as 60 per cent against China, but subsequently signalled a rate of 10 per cent. He has linked the levies to the country\u2019s role in the flow of ingredients or \u201cprecursors\u201d for fentanyl.<\/p>\n<p>China <a href=\"https:\/\/www.ft.com\/content\/580731f6-8500-4a94-b49c-217a1c95da4c\" data-trackable=\"link\">agreed to take actions<\/a> to stem the flow of precursors at a summit between President Xi Jinping and then-president Joe Biden in San Francisco in November 2023. Since then, Beijing has taken some actions that were welcomed by the Biden administration, but critics, including some in the outgoing administration, wanted China to do much more. <\/p>\n<p>Although widely anticipated, the measures pose a significant challenge to Xi Jinping\u2019s government at a time when weaknesses in domestic demand have made it particularly dependent on exports for economic growth. Last year, China\u2019s trade surplus hit <a href=\"https:\/\/www.ft.com\/content\/f71a3570-020f-4c43-a0ab-7143f5f9fd98\" data-trackable=\"link\">a record high<\/a> of close to $1tn.<\/p>\n<aside aria-labelledby=\"aside-label\" class=\"n-content-recommended--single-story n-content-recommended--inset\" data-component=\"recommended\">\n<p class=\"n-content-recommended__title\">Recommended<\/p>\n<div class=\"o-teaser o-teaser--article o-teaser--small o-teaser--stacked o-teaser--has-image js-teaser\" data-id=\"5a262286-e53b-44d7-a99f-5dd26c1fb1e3\">\n<div class=\"o-teaser__image-container js-teaser-image-container\"><a href=\"https:\/\/www.ft.com\/content\/5a262286-e53b-44d7-a99f-5dd26c1fb1e3\" data-trackable=\"image-link\" tabindex=\"-1\" aria-hidden=\"true\"><\/p>\n<div class=\"o-teaser__image-placeholder\" style=\"aspect-ratio:2290\/1288\"><img decoding=\"async\" class=\"o-teaser__image\" src=\"https:\/\/www.ft.com\/__origami\/service\/image\/v2\/images\/raw\/https%3A%2F%2Fwww.ft.com%2F__origami%2Fservice%2Fimage%2Fv2%2Fimages%2Fraw%2Fhttps%253A%252F%252Fd1e00ek4ebabms.cloudfront.net%252Fproduction%252F209c80ad-8da7-4c17-bc25-c4d753c90068.jpg%3Fsource%3Dnext-article%26fit%3Dscale-down%26quality%3Dhighest%26width%3D700%26dpr%3D1?source=next&amp;fit=scale-down&amp;dpr=2&amp;width=240\" alt=\"\"\/><\/div>\n<p><\/a><\/div>\n<\/div>\n<\/aside>\n<p>Tao Wang, chief China economist at UBS Investment Bank, said the tariffs had been imposed more quickly than expected and that the blanket 10 per cent rate was more expansive than phased measures under Trump\u2019s first administration.<\/p>\n<p>\u201cThis is broader and likely much bigger than the first round,\u201d she said, adding that many expected Trump to add more tariffs once his officials completed a review of trade policy in April.<\/p>\n<p>Wang said she expected a hit to China\u2019s GDP of 0.3 to 0.4 per cent.<\/p>\n<p>In a report published last week, Morningstar said the 10 per cent tariffs would most affect home appliances, home furnishings, lithium batteries and electric vehicles in China. But it added many companies would \u201clikely see an impact of less than 5 per cent of their respective total revenue\u201d and that they \u201cmay not be as bad as feared for some industries\u201d.<\/p>\n<p>Beijing also faces trade tensions with the EU over tariffs imposed on its electric vehicles last summer, which have led to a wave of countermeasures on products from <a href=\"https:\/\/www.ft.com\/content\/6848d459-2d70-4519-a4b8-3c0262b514db\" data-trackable=\"link\">cognac to dairy<\/a>.\u00a0<\/p>\n<\/div>\n\n","protected":false},"excerpt":{"rendered":"<p>Unlock the White House Watch newsletter for free Your guide to what the 2024 US election means for Washington and the world Beijing has hit out at new 10 per cent tariffs imposed by the US on Chinese exports, saying it will \u201ctake necessary countermeasures to defend its rights and interests\u201d as trade tensions between [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":63996,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[93],"tags":[6618,261,34852,16168,25404,1175],"dealstore":[],"offerexpiration":[],"class_list":["post-63995","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance","tag-china","tag-combat","tag-countermeasures","tag-tariffs","tag-threatens","tag-trump"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.4 - 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