China retaliated against Trump's policies by imposing a 125% tariff on US imports, while the US removed tariffs from other countries but maintained pressure on China.
Beijing/Washington: The ongoing trade war between the US and China is intensifying. Following US President Donald Trump's order to increase tariffs on Chinese goods to 145%, China retaliated by announcing a 125% tariff on US imports. This move has sent ripples through the global trade community.
China's Two-Pronged Approach: Retaliatory Tariffs and WTO Complaint
While imposing retaliatory tariffs on the US, China has also filed a formal complaint against the US with the World Trade Organization (WTO). The Chinese mission reported on Friday that it had filed an additional complaint with the WTO against the US tariff decision, characterizing it as "unfair and irresponsible."
China Prepares to Boost Domestic Demand
To mitigate the impact of US tariffs, China has begun domestic preparations. The government has appealed to its citizens to increase consumer spending to offset the decline in exports. An article published in the People's Daily, the mouthpiece of the Chinese Communist Party, stated that China will now base its economic growth on domestic consumption.
Zhou Mei, a researcher at a think tank affiliated with the Ministry of Commerce, stated, "Our economy is integrated; consumers and producers are one and the same, and through this consolidation, we will overcome these challenges."
China Expresses Strong Displeasure with Trump's Decision
Last week, Donald Trump issued a new executive order announcing an additional 20% levy on Chinese goods, bringing the total tariff to 145%. This decision came after the US eased tariffs on several other countries while maintaining pressure on China.
