The Chinese Foreign Ministry provided a brief 12-word statement when questioned about Trump’s decision to impose further tariffs on China.
The ongoing tariff dispute shows no signs of resolution in the near future. Despite common beliefs about percentage limitations, Donald Trump’s approach to tariffs defies these notions. Previously, Trump escalated tariffs on China to an unprecedented 145 percent, and it seems that was just the beginning.
Following China’s decision to increase tariffs on US goods from 84 percent to 125 percent, Trump retaliated in kind.
On April 15, the President signed an executive order to ‘investigate national security risks associated with US reliance on imported processed critical minerals and derivative products’ and introduced even higher tariffs on Chinese imports.
When questioned today regarding the 245 percent tariffs the US planned to impose on China, Chinese Foreign Ministry spokesperson Lin Jian responded, as the Global Times reported: “You can ask the US side for the specific tax rate figures.”
The executive order from Trump provides a more detailed breakdown of the tax rates for China.
The White House’s description of the executive order states: “This Executive Order builds on previous actions taken by the Trump Administration to ensure US trade policy serves the nation’s long-term interests.
“On Day One, President Trump initiated his America First Trade Policy to make America’s economy great again. On Liberation Day, President Trump imposed a 10 percent tariff on all countries and individualized reciprocal higher tariffs on nations with which the U.S. has the largest trade deficits in order to level the playing field and protect America’s national security.
“More than 75 countries have already reached out to discuss new trade deals. As a result, the individualized higher tariffs are currently paused amid these discussions, except for China.”
What implications does this executive order have for China?
The order details that due to China’s ‘retaliation’ with its own tariffs against the US, the country now faces up to a 245 percent tariff on exports to the United States.
It further explains: “President Trump signed proclamations to close existing loopholes and exemptions to restore a true 25 percent tariff on steel and elevate the tariff to 25 percent on aluminium.”
The order also mentions that Trump introduced the “Fair and Reciprocal Plan” on trade to ensure fair US trade relationships and counter unfavorable trade agreements, signing a memorandum to protect American innovation, including the possible implementation of tariffs to counter digital service taxes (DSTs) and other policies by foreign governments that negatively impact American businesses.
It also states: “President Trump signed similar Executive Orders launching investigations into how imports of copper and imports of timber, lumber, and their derivative products threaten America’s national security and economic stability.”