Beijing steps up criticism

BEIJING: Any trade war with the United States will only bring disaster to the world economy, Chinese Commerce Minister Zhong Shan said yesterday, as Beijing stepped up its criticism on proposed metals tariffs by Washington amid fears it could shatter global growth

After pressure from allies, the US has opened the way for more exemptions from tariffs of 25 per cent on steel imports and 10 per cent on aluminium that US President Donald Trump set last week.

On Saturday, the European Union (EU) and Japan urged the US to grant them exemptions from metal import tariffs, with Tokyo calling for “calm-headed behaviour”.

But the target of Trump’s ire is China, whose capacity expansions have helped add to global surpluses of steel. China has repeatedly vowed to defend its “legitimate rights and interests” if targeted by US trade actions.

China does not want a trade war and will not initiate one, said Zhong on the sidelines of China’s annual session of parliament.

“There are no winners in a trade war. It will only bring disaster to China, the US and the world,” he said, adding that the two countries would continue to talk.

Meanwhile, Trump renewed his demand on Saturday that the EU halts its trade barriers to US products in order to spare his allies the new tariffs.

He made his comments after crunch talks in Brussels between EU negotiators and US trade representative Robert Lighthizer in an effort to defuse a bitter row that many fear could turn into an all-out trade war.

The EU’s top trade official said the US failed to provide full clarity on how Europe and Japan could be spared set to continue this week.