Trump’s tariffs rile China
Beijing – China warned it would fight back “at any cost” with fresh measures to safeguard its interests if the US sticks to its protectionist actions, after President Donald Trump threatened an extra $100 billion (R1.2 trillion) in tariffs in a worsening trade dispute between the world’s two biggest economies.
Responding to Trump’s comments, the commerce ministry yesterday reiterated that China was not afraid of a trade war, even though it did not seek one, and said the conflict had been provoked by the United States.
“If the US disregards the objections of China and the international community and persists in unilateralism and trade protectionism, the Chinese side will follow through to the end, at any cost, and definitely fight back resolutely,” a spokesperson said in a statement.
The Chinese foreign ministry issued an identical statement, which added Beijing would continue to monitor tariff moves from the United States.
Chinese state media yesterday slammed Trump’s threat of more trade action as “ridiculous” after the US president had directed trade officials to identify tariffs on more Chinese imports – escalating an already high-stakes trade dispute between the nations.
“This latest intimidation reflects the deep arrogance of some American elites in their attitude towards China,” the state-run Global Times said in an editorial. Analysts at Oxford Economics warned that a full-blown trade war would have damaging consequences.
“Importantly, these threatened tariffs will be subject to negotiation, and therefore shouldn’t be considered as final,” the analysts wrote in a note to client.
“A full blown trade war, meanwhile, would have a more pronounced effect. The US and China would suffer significant slowdown in real GDP growth – a cumulative loss around 1.0 percentage point.” It would cut global economic growth to 2.5% in 2019 from 3% in Oxford’s baseline scenario.
The escalating tit-for-tat trade actions between the two economic superpowers have roiled global financial markets, as investors worried about the impact on world trade and growth, hitting equities, the dollar and a range of riskier assets such as copper and boosting safe-havens such as the Japanese yen and gold.