China Warns of Severe Impact on Relations as US Imposes New Tariffs

Tue May 14 2024
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BEIJING: Beijing on Tuesday warned new US tariffs on $18 billion worth of imports from China would “severely affect” bilateral relations between the two largest economies. “This will severely affect the atmosphere for bilateral cooperation,” China’s commerce ministry said in a statement.

China’s commerce ministry urged the US to “immediately rectify its mistaken actions and cancel the additional tariff measures against China,” emphasizing the detrimental impact these tariffs would have on the atmosphere for bilateral cooperation.

The White House announced its decision to hike tariffs on strategic sectors such as electric vehicles, batteries, steel, and critical minerals. These measures are part of President Joe Biden’s efforts as he prepares for the upcoming election in November, with officials criticizing the trade policies of his predecessor, Donald Trump.

Under the new tariffs, the rate on electric vehicles (EVs) is set to quadruple to 100 percent this year, while tariffs on semiconductors will surge from 25 percent to 50 percent by next year, according to the White House.

The decision follows a review of tariffs introduced during the trade war between the US and China initiated by the Trump administration, which saw levies imposed on approximately $300 billion worth of Chinese goods.

China swiftly denounced the US move, stating that it “resolutely opposes” the decision and making “stern representations” against it. Beijing accused Washington of “politicizing and instrumentalizing economic and trade issues,” labeling it a case of political manipulation.

Moreover, China criticized the tariffs as being inconsistent with the spirit of consensus reached between Chinese President Xi Jinping and President Biden during their meeting last year. The commerce ministry asserted that China would take “resolute measures” to defend its rights and interests in response to the imposition of tariffs.

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