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Topics: Donald Trump, China, Politics, US News
Poppy Bilderbeck
Topics: Donald Trump, China, Politics, US News
Trump has warned China of the 'one thing they cannot afford to do' after the country hit back with counter tariffs.
On April 2, Trump unveiled major new tariffs inflicted on goods across the globe, dubbing the day 'Liberation Day' for America.
A 25 percent tariff was slapped on all foreign-made automobiles and as for other goods, Trump revealed a baseline 10 percent tariff to be applied to all countries as of today (April 5) - except those compliant with the USMCA free trade agreement between Mexico, Canada, and the United States.
Non-compliant countries will be charged at a 25 percent rate, while UK imports have a 10 percent tariff and EU goods will have a 20 percent tariff.
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The president also announced reciprocal tariffs on dozens of so-called 'worst offenders' seeing China hit with a total tariffs of a whopping 54 percent.
Treasury Secretary Scott Bessent warned countries against 'rash' retaliation, however, it didn't take long for China to hit back.
Starting from April 10, China will add a 34 percent tariff on US goods.
And Trump has taken to Truth Social in response, writing on April 5: "CHINA PLAYED IT WRONG, THEY PANICKED - THE ONE THING THEY CANNOT AFFORD TO DO!"
In a post about TikTok, he referenced China's reaction to the tariffs too.
"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!"
However, a spokesperson at the ministry of commerce also revealed China has also filed a lawsuit with the World Trade Organization (WTO) amid claims that Trump's tariffs 'seriously violates WTO rules,' according to BBC News.
The spokesperson alleged the tariff also '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 said.
In addition to the tariffs, Beijing’s commerce ministry also said it would impose more export controls on rare earths, which are materials that can be used in high-tech products such as computer chips and electric vehicle batteries.