Trump has issued a caution to China about the ‘one thing they cannot afford to do’ after the nation responded with counter tariffs.
On April 2, Trump announced significant new tariffs on global goods, declaring the day as ‘Liberation Day’ for the United States.
A 25 percent tariff was imposed on all foreign-made automobiles. Additionally, Trump introduced a baseline 10 percent tariff affecting all countries starting April 5, excluding those part of the USMCA free trade agreement with Mexico, Canada, and the United States.
Countries not part of this agreement will face a 25 percent tariff, while UK imports will bear a 10 percent charge and EU goods a 20 percent tariff.
The president also detailed reciprocal tariffs targeting numerous ‘worst offenders,’ with China facing a total tariff rate of 54 percent.
Treasury Secretary Scott Bessent cautioned nations against acting rashly in retaliation, yet China quickly responded.
Effective April 10, China will implement a 34 percent tariff on US goods.
In reaction, Trump addressed the situation on Truth Social on April 5, stating: “CHINA PLAYED IT WRONG, THEY PANICKED – THE ONE THING THEY CANNOT AFFORD TO DO!”
He also commented on TikTok, referencing China’s response to the tariffs:
“We hope to continue working in Good Faith with China, who I understand are not very happy about our Reciprocal Tariffs (Necessary for Fair and Balanced Trade between China and the U.S.A.!). This proves that Tariffs are the most powerful Economic tool, and very important to our National Security!”
Meanwhile, a spokesperson from China’s ministry of commerce announced that they have lodged a complaint with the World Trade Organization (WTO), arguing that Trump’s tariffs ‘seriously violates WTO rules,’ as reported by BBC News.
The spokesperson claimed the tariff ‘damages the legitimate rights and interests of WTO members, and undermines the rules-based multilateral trading system and the international economic and trade order’
“It is a typical unilateral bullying practice that endangers the stability of the global economic and trade order. China firmly opposes this,” they declared.
Alongside the tariffs, Beijing’s commerce ministry announced additional export controls on rare earths, which are critical components in high-tech products like computer chips and electric vehicle batteries.