**International:** Tensions between the US and China intensify with tariffs reaching unprecedented levels, as Beijing calls on Washington to cease threats and blackmail. Both nations impose retaliatory levies while global economies brace for the impact amid ongoing negotiations and shifting trade dynamics.
Tensions between the United States and China escalated further on Wednesday as Beijing urged Washington to “stop threatening and blackmailing” amid a worsening trade war marked by escalating tariffs. The latest diplomatic exchange followed US President Donald Trump’s assertion that it was up to China to initiate negotiations to resolve the dispute, which has seen tariffs on certain goods soar to unprecedented levels.
The US administration has imposed new levies on a wide range of imports, with the most significant measures targeting Chinese goods. According to a White House factsheet released on Tuesday, some Chinese products now face tariffs as high as 245 per cent, a figure resulting from reciprocal measures by both countries. China has responded with retaliatory tariffs reaching 125 per cent on certain American exports.
Speaking to The Punch, Foreign Ministry spokesman Lin Jian emphasised China’s stance: “If the US truly wants to resolve the issue through dialogue and negotiation, it should stop exerting extreme pressure, stop threatening and blackmailing, and engage in talks with China based on equality, respect, and mutual benefit.” He added, “China’s position has been very clear. There is no winner in a tariff war or a trade war,” adding that “China does not want to fight, but it is not afraid to fight.”
The intensified trade conflict arises from the Trump administration’s actions, which initially introduced 20 per cent tariffs on imports from China citing concerns over the country’s role in the fentanyl supply chain. These were then augmented by duties as high as 125 per cent targeting perceived unfair trade practices by China. Despite these measures, some exemptions have been implemented, including a temporary reprieve for certain technology products such as smartphones and laptops.
The White House has framed the dispute as contingent on China making the next move, with a statement read out by Press Secretary Karoline Leavitt declaring, “The ball is in China’s court. China needs to make a deal with us. We don’t have to make a deal with them.”
Amid the trade tensions, China announced stronger-than-expected economic growth in the first quarter of the year, at 5.4 per cent, buoyed by exporters ramping up shipments ahead of the anticipated tariff hikes. However, analysts anticipate that the economic impact of escalating tariffs will be felt more acutely in the coming months. Heron Lim from Moody’s Analytics told AFP, “The escalation happening in April is going to be felt in the second-quarter figures, as the tariffs will send US firms looking for other suppliers, impeding Chinese exports and slowing investment.”
The trade war has also affected other economies closely linked to US-China trade. Japan’s envoy for Washington talks, Ryosei Akazawa, expressed optimism about reaching a “win-win” outcome in upcoming discussions with US Treasury Secretary Scott Bessent. Meanwhile, Honda Motor Company announced a production shift for its hybrid Civic model from Japan to the United States, a move the company attributed to longstanding policy to manufacture vehicles where demand is strongest.
South Korea, another major exporter, is also actively engaging in talks aimed at mitigating the impact of the tariff conflicts. Finance Minister Choi Sang-mok is scheduled to meet Bessent next week with the objective to “delay the imposition of reciprocal tariffs as much as possible and minimise uncertainty for Korean companies operating not only in the US but also in global markets,” Choi said.
The impact of the trade dispute has also been felt in the technology sector. Asian chip stocks declined following a warning from Nvidia that it expects a $5.5 billion financial hit linked to new US licensing restrictions on semiconductor sales to China. Furthermore, President Trump has ordered a probe that could result in tariffs on critical minerals, rare-earth metals, and related products, including smartphones, signalling a possible broadening of the trade conflict to new categories.
As the trade war continues to deepen, the ongoing negotiations and tariff adjustments remain closely watched by global markets and governments, given their far-reaching implications for international trade and economic stability.
Source: Noah Wire Services
