US tariff hikes no longer make economic sense: China
US tariff hikes no longer make economic sense: China
A Chinese foreign ministry spokesperson said on Thursday that the United States' 245 per cent tariff on certain products from China no longer makes economic sense
BEIJING — A Chinese foreign ministry spokesperson said on Thursday that the
United States' 245 per cent tariff on certain products from China no longer
makes economic sense.
It the US continues to play the "tariff numbers
game", it will pay no attention to it, according to the spokesperson,
Xinhua news agency reported.
The statement came in the wake of White House's statement
that China faces tariffs of up to 245 per cent due to its retaliatory action.
China now faces up to 245 per cent tariffs on imports to
the US as a result of its retaliatory tariffs, according to the White House
Fact sheet.
This came after Beijing ordered its airlines not to take
any further deliveries of Boeing jets in response to the earlier US decision to
impose 145 per cent tariffs on Chinese goods.
According to the White House, the US President is open to
making a trade deal with China, but Beijing should make the first move.
"More than 75 countries have already reached out to
discuss new trade deals. As a result, the individualised higher tariffs are
currently paused amid these discussions, except for China, which
retaliated," it said.
The White House also accused Beijing of banning exports
to the US of gallium, germanium, antimony, and other key high-tech materials
with potential military applications.
There are no winners in a trade conflict and the tussle
between China and the US raises the risk of economic and geopolitical fallout,
a report by S&P Global Ratings said this week.
Home to sizable manufacturing activities, Asia-Pacific is
highly dependent on exports to the U.S. and China for growth. At the same time,
Asia-Pacific depends on the US mostly for security.
The region could find itself pushed to take sides or walk
a delicate line between the two large economies, the report stated.
To counteract tariffs, Asia-Pacific governments are
exploring the formation of regional trade blocs or bilateral trade agreements.
These efforts could accelerate, expediting the need to relocate supply sources
and production.
China's economic growth is seeing rising downside risk
amid rising trade tensions with the US as its export engine falters from weaker
global demand. The country's domestic growth engine remains subdued, given the
lingering real estate crisis, which is dragging down confidence.
