The Chinese flag flies in Tianmen Square, as seen from the great hall of the people, where the National People’s Congress meetings continued in Beijing on March 6, 2025.
Greg Baker | AFP | Getty images
The Chinese Ministry of Commerce said that it “strongly opposed” the threat to increasing the tariff of US President Donald Trump, and vowed to take counselor to protect his rights and interests.
Trump said he would impose an additional 50% duty on US imports from China on Wednesday, if Beijing did not withdraw 34% tariffs on US products last week.
According to CNBC translation, “American threat is a mistake to increase tariffs on China.” “China will never accept it. If America emphasizes in its own way, China will fight till the end.”
China’s Finance Ministry announced last Friday 34% in additional tariffs To implement new levy of 34% to China, from April 10, from 10 April, from 10 April, from 10, Trump’s vengeance.
The entire -board tariff followed two previous rounds of 10% -15% tariff, which targets most agricultural and energy products imported from the US. The comprehensive tariff scope, reflects the low Chinese leadership expectations for the trade deal with the US, said Teno managing director Gabriel Wildau.
Trump’s 34% tariffs on China were at the top of 20% of duties since February, this year the total new tariffs on China were up to 54%. According to Morgan Stanley, the additional levy has increased the US -loving average tariff rate on China by 65%, and can bring China’s economy to 1.5 to 2 percentage points this year.
Senior economist Tianchen Ju, an economist intelligence unit, said, “Since China is already facing more than 60% in tariff rate, it really does not matter whether it grows up to 50% or 500%.”
“China is on the defensive side, but originally the two sides are testing each other’s boundary,” Ju said.
As a risk of an increase in an acute American-China trade war, Beijing can further resort to retaliation, such as preventing the purchase of American agricultural commodities, corresponds to the American tariff and further expansion of export control over metals and minerals, Zoo said.
Beijing has already kept export curbs Major rare earth elementsProhibited export Dual -use items to a dozen American institutionsAmerican firm for this “List of incredible institutions,” To subdue them to comprehensive sanctions while working in China.
People’s Bank of China determines midpoint rate on Tuesday For onshore yuan 7.2038 per dollarAccording to data provider wind information, the weakest level since September 2023. Yuan is allowed to trade within 2% band of this midpoint rate.
Yuan’s weakening is a “big sign,” Robin Brooks, Senior partner of Brookings Institution told CNBC Squalk box asia“This seedling is politely saying that this is happening a little, we are putting you in notice, we can devalue if we want and if you maintain it, big things can come.”
“This is a clear shot in Washington’s bow,” Brooks said.
The Chinese onshore yuan weakened more than 0.39%.
Trump has shown some signs of supporting tariffs despite increasing pressure in financial markets and Signs of disappointment among their colleagues tooOne in Posted on social media platform Truth social Monday, the President said, “All talks with China will end with us about their requested meetings!”
The US State Department did not immediately respond to the CNBC request for comments.
“Escation is probably the only short -term result, but the conversation will eventually come as the two sides feel the pinnacle of the economic recession,” Ju said.