Beijing warns about the severe impact of new US tariffs

On Tuesday, Beijing warned that the imposition of new US tariffs on $18 billion worth of imports from China could have a severe impact on the relationship between the two countries. The move by the White House to hike tariffs on key sectors such as electric vehicles, batteries, steel, and vital minerals has raised concerns about the future of US-China trade relations.

China's Response and Call for Correction

In response to the announcement of the new tariffs, China's commerce ministry expressed strong opposition, urging the US to promptly correct its actions and revoke the additional tariff measures imposed on China. The ministry stated that the new tariffs would severely affect the atmosphere for bilateral cooperation and go against the consensus reached by the two countries' heads of state.

Tariff Increase on Electric Vehicles and Semiconductors

The White House announced that the tariff rate for electric vehicles would increase fourfold to 100 percent this year, while the rate for semiconductors would rise from 25 percent to 50 percent by next year. This decision comes as President Joe Biden prepares for the upcoming November election, where he is expected to face Republican rival Donald Trump again.

China's Strong Dissatisfaction and Opposition

Beijing accused Washington of politicizing and manipulating economic and trade matters, labeling it as a classic instance of political manipulation. The commerce ministry emphasized that the 301 tariffs are not in line with the consensus reached by the two heads of state and vowed to take resolute measures to defend China's rights and interests.

Reassessment of Tariffs and Trade Dispute History

The tariff hike on imports from China follows a reassessment of tariffs implemented amid the trade dispute between Washington and Beijing. Former President Trump imposed levies on approximately $300 billion worth of Chinese goods during his tenure, under the Section 301 investigation. The US Trade Representative is required to assess the impact of these levies every four years.

In conclusion, the imposition of new US tariffs on imports from China is likely to have far-reaching consequences on the relationship between the two countries. The decision has sparked strong opposition from Beijing, which has called for the US to correct its actions and revoke the additional tariff measures. As the two countries navigate this latest development in their trade relations, the global community watches closely to see how the situation unfolds.