By Consultants Review Team
China's Ministry of Commerce said Friday that it "firmly opposes" US President Donald Trump's latest threat to raise tariffs on Chinese goods and promised retaliation if necessary.
"If the U.S. insists on going its own way, China will take all necessary countermeasures to defend its legitimate rights and interests," a Ministry of Commerce spokesperson said.
"We urge the U.S. side to not repeat its own mistakes, and to return as soon as possible to the right track of properly resolving conflicts through dialogue on equal footing."
The statement came after Trump announced on Thursday that the US would impose an additional 10% tariff on Chinese imports on March 4, coinciding with the start of China's annual parliamentary meetings.
The new tariffs would be in addition to the 10% tariffs Trump imposed on China on February 4.
Trump announced that two rounds of China duties would be imposed in response to the Asian country's involvement in the fentanyl trade. The addictive drug, whose precursors are primarily produced in China and Mexico, causes tens of thousands of overdose deaths in the United States each year.
"In the short term, China's response will most likely include raising tariffs on select US imports, adding more American firms to its untrustworthy entity list, and potentially tightening export controls on critical minerals," Neil Thomas, a fellow on Chinese politics at the Asia Society, said via email.
He did, however, expect Beijing's retaliation to be "measured," as Chinese President Xi Jinping has an incentive to meet with his American counterpart and initiate negotiations to avoid measures that put additional strain on already sluggish economic growth.
China's exports have been a rare bright spot in a slowing economy. China's largest single-country trading partner is the United States.
While Beijing may maintain a "restrained" stance, future moves are likely to target industries important to Trump supporters, according to Alfredo Montufar-Helu, head of The Conference Board's China Center.
China would prefer to leave some room for future negotiations in order to avoid further increases in import tariffs and other "corrective" measures by Washington, he said.
Following the initial round of tariffs earlier this month, China's retaliatory measures included raising duties on certain US energy imports and placing two US companies on an untrustworthy entities list, which could limit their ability to do business in the Asian country.
China has also tightened controls on critical mineral exports to the United States.
"The sharpest arrow that China has in its quiver would be to restrict U.S. access to critical minerals that cannot be easily sourced elsewhere," said Stephen Olson, a visiting senior fellow at the Institute of Southeast Asian Studies and a former US trade negotiator.
We use cookies to ensure you get the best experience on our website. Read more...
