China: No desire for trade war, but won’t fear US Tariff threats

The White House has announced the imposition of tariffs up to 245% on imported goods from China, escalating trade tensions.

In response, China’s Foreign Ministry emphasized that “there are no winners in a tariff or trade war; we don’t seek war, but we are not afraid of it.”

President Donald Trump directed the Department of Commerce to initiate “Section 232” investigations on vital mineral imports, signaling a potential tariff expansion.

Trump has already imposed a 10% tariff on all countries since April 2, with more than 75 countries reaching out for trade negotiations. However, due to retaliatory actions from China, Chinese exports to the U.S. now face tariffs up to 245%.

In a statement, China’s Foreign Ministry spokesperson, Lin Jian, responded to U.S. tariff figures, noting that the trade war began with the U.S. and China’s defensive actions are legal and justified.

Lin Jian warned that a tariff war has no winner, reaffirming China’s stance that while it does not want a war, it is prepared for one.

Following tariff hikes on items like syringes, needles, and electric vehicles in August 2024, the total tariff rate on Chinese goods has now reached 245%, with some items facing tariffs as high as 1,000%.

The U.S. has also imposed “anti-dumping and countervailing” duties on certain Chinese goods, such as paper containers, where tariffs have surged up to 810%.

The White House spokesperson remarked that Trump is open to negotiating with China but emphasized that “the ball is in China’s court” and Beijing must take the first step.

Lin Jian responded, reiterating that the tariff war was initiated by the U.S. and emphasized the need for talks based on mutual respect, equality, and shared interests, not through maximum pressure and threats.

Expert analyses suggest that Trump’s new investigations into vital minerals may trigger a new trade conflict in the critical mineral sector, as the U.S. seeks to reduce China’s dominance in rare earth supply chains.

In response to the growing tensions, China has also banned the export of key metals and rare-earth magnets, which could significantly affect global industries like defense, robotics, energy, and automotive manufacturing.

The ongoing trade war between the U.S. and China highlights the deepening rivalry in global economic and industrial dominance. As both countries continue to escalate tariffs, it remains to be seen whether diplomacy or further economic pressure will prevail.

These developments are expected to have a far-reaching impact on global supply chains, especially in industries reliant on rare-earth elements and critical materials. As the situation unfolds, businesses and governments worldwide are closely monitoring the potential disruptions to international trade.

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