China on Tuesday announced a series of countermeasures against the U.S.’ latest extra 10% tariffs on imports from China, with moves including imposing additional tariffs of 10-15% on U.S. agricultural products starting from March 10.
The Chinese Foreign Ministry reiterated that the Chinese people have never been swayed by fallacies, deterred by intimidation, or cowed by bullying. Pressuring, coercion, or threat is not the right way to engage with China, it said, emphasizing that exerting maximum pressure on China is a mistargeted and miscalculated approach.
An additional 15% tariff will be imposed on imported chicken, wheat, corn, and cotton, while a 10% tariff will be imposed on sorghum, soybean, pork, beef, aquatic products, fruits, vegetables, and dairy products, according to a statement by the Customs Tariff Commission of the State Council on Tuesday. For these products, corresponding tariffs will be added to the current tariff rates.
On Monday, the U.S. government announced the imposition of an additional 10% tariff on all Chinese goods imported to the U.S. citing the fentanyl issue as an excuse. The unilateral tariffs “undermine the multilateral trading system, exacerbate the burden on American businesses and consumers, and damage the fundamental basis of economic and trade cooperation between China and the U.S.,” the Customs Tariff Commission said.
The Ministry of Commerce (MOFCOM) also announced on Tuesday that China has initiated legal action against the U.S. under the WTO dispute settlement mechanism regarding the latter’s latest tariff increase on Chinese products
“China will resolutely safeguard its legitimate rights and interests in accordance with WTO rules and defend the multilateral trading system,” the ministry added.
Justified reaction
Chinese Foreign Ministry spokesperson Lin Jian on Tuesday said that the U.S. once again hiked tariffs on Chinese imports citing the fentanyl issue as an excuse, despite China’s repeated opposition. “It is legitimate and necessary for China to take countermeasures to defend its rights and interests,” Lin said.
If the U.S. really wants to settle the fentanyl issue, Lin said, “it needs to stand by the principles of equality, mutual respect, and mutual benefit” and engage in consultation with China to address each other’s concerns.
“If the U.S. has another agenda in mind and insists on waging a tariff war, trade war, or whatever war, China will not flinch and is ready to make due response,” Lin declared. “We urge the U.S. to stop being domineering and return to the right track of dialogue and cooperation at an early date,” said Lin.
“China’s countermeasures are completely proper and necessary, as the country is committed to maintaining the multilateral trade system and protecting its core interests,” He Weiwen, a senior fellow at the Center for China and Globalization, told the Global Times on Tuesday.
He noted that historically, most U.S. tariff hikes have triggered countermeasures. “When the Trump administration announced the first 10% tariff on Chinese imports in February, China exercised restraint by imposing tariffs on U.S. energy products rather than agricultural goods, hoping to leave room for negotiations,” he said.
“However, as the U.S. continues escalating trade tensions with additional tariffs, we must respond with strong countermeasures,” He added.
While the U.S. keeps intensifying trade friction with China citing the fentanyl issue, China’s State Council Information Office on Tuesday released a white paper, titled “Controlling Fentanyl-Related Substances—China’s Contribution,” highlighting the country’s rigorous control over the chemicals.
China has attached great importance to maintaining control over fentanyl-related substances in recent years, the white paper says.
The country has exercised strict supervision over the chemicals, rigorously prevented their abuse, and struck hard against the smuggling, manufacturing, and trafficking of fentanyl-related substances and related precursor chemicals, it notes.
“China’s countermeasures are justified and indisputable, given the U.S.’ unilateral trade measures and economic coercion that escalated trade tensions between the world’s two largest countries,” Li Yong, a senior research fellow at the China Association of International Trade, told the Global Times on Tuesday.
“The U.S. should work with China to resolve trade disputes through equal-footed consultation,” Lou Qinjian, spokesperson for the third session of the 14th National People’s Congress, China’s national legislature, said at a press conference in Beijing on Tuesday.
China stands ready to work with the U.S. to address each other’s concerns through dialogue and consultation on the basis of mutual respect, equality, reciprocity, and mutual benefit, but “will never accept any act of pressuring or threatening,” Lou said.
Multi-faceted response
In addition to the above responses over U.S. tariff hikes on Chinese products, China’s Ministry of Commerce on Tuesday announced that it decided to add 15 US entities, including Leidos, to the export control list in order to safeguard national security and interests and to fulfill the international obligations of non-proliferation.
In addition, China has decided to add 10 U.S. firms to the country’s unreliable entity list for arms sales to China’s Taiwan region or conducting so-called cooperation on military technologies with the island, according to MOFCOM.
The U.S. company Illumina, Inc., has been banned from exporting gene sequencers to China, the ministry announced Tuesday. The measure, effective immediately, follows China’s move to add the company to its unreliable entity list on February 4, according to the ministry.
Also on Tuesday, the MOFCOM announced that it has launched an anti-circumvention investigation into related US fiber optic products, marking the first time China has initiated such an investigation, after learning relevant fiber optic products are suspected of circumventing China’s anti-dumping measures. Based on the investigation’s findings, a decision will be made on whether to impose anti-circumvention measures against the U.S., the ministry said.
In addition, the General Administration of Customs (GAC) announced it has suspended the qualifications of three U.S. companies, including CHS Inc., to export soybeans to China. The decision was made after Chinese customs detected the presence of ergot and seed-coating agents in imported U.S. soybeans and aims to protect the health of Chinese consumers and ensure the safety of imported grain, the GAC said.
The GAC also suspended the import of U.S. logs effective on Tuesday to prevent harmful organisms and protect China’s agricultural and forestry production as well as ecological safety, after detecting forest pests such as bark beetles and longhorn beetles in imported U.S. logs.
“Instead of finding solutions to problems in the U.S.’ domestic economy, the Trump administration resorts to imposing additional tariffs on its major trade partners. However, its protectionist practices violate WTO rules and damage the current international trade system, prompting strong countermeasures from other nations,” trade research Li Yong said.
Canada imposed 25% retaliatory tariffs on US goods valued at $30 billion CAD ($20.69 billion USD) from Tuesday, with the remaining $125 billion CAD in tariffs coming into effect in 21 days, Canadian Prime Minister Justin Trudeau announced.
“Our tariffs will remain in place until the U.S. trade action is withdrawn, and if U.S. tariffs remain, we are in ongoing discussions with provinces and territories to pursue several non-tariff measures,” Trudeau added.
“In the process of escalating trade conflicts, the White House has miscalculated its trade partners’ demand for the U.S. market,” Li said. “It will become increasingly difficult for other countries to export to the U.S. and shifting production to the U.S. cannot address the root issue, so other countries will be forced to seek a new non-U.S.-dominated international trade structure with greater stability and reduced tariff uncertainty,” he said.
“By contrast, the U.S.’ domestic economy and industrial structure will bear significant pressure,” Li said, noting that Trump’s tariffs will “fuel domestic inflation and harm U.S. foreign trade-related industries, undermining U.S. industrial competitiveness globally.”
Global Times
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