China has reacted sharply to the United States’ decision to impose tariffs of up to 245 per cent on Chinese imports, cautioning Washington that if it continues playing the "tariff numbers game", Beijing will ignore the provocation.
The warning was issued by China’s foreign ministry on Thursday, as reported by Reuters, following the release of a White House fact sheet detailing President Donald Trump’s fresh salvo in the escalating trade conflict.
The Trump administration said that “China now faces up to a 245% tariff on imports to the United States as a result of its retaliatory actions,” while refraining from providing a breakdown of the measures.
“More than 75 countries have already reached out to discuss new trade deals. As a result, the individualised higher tariffs are currently paused amid these discussions, except for China, which retaliated,” the document added.
The dramatic hike marks a significant escalation in the economic tensions between the world’s two largest economies. China, in turn, recently raised its own tariffs on American goods to as high as 125 per cent after the US imposed a 145 per cent levy on certain Chinese exports.
In a parallel move, Beijing has also taken the matter to the World Trade Organization (WTO), filing a formal complaint against what it called unfair and unilateral trade practices.
The Chinese government has condemned the American tariffs, asserting they “go against the whole world” and “seriously damage the rules-based multilateral trading system”.
The US administration, in its latest fact sheet, further accused Beijing of weaponising its dominance over key minerals essential to high-tech industries and defence.
“Just this week, China suspended exports of six heavy rare earth metals, as well as rare earth magnets, in order to choke off supplies of components central to automakers, aerospace manufacturers, semiconductor companies and military contractors around the world,” it said.
Washington also accused China of previously banning exports of gallium, germanium, antimony, and other strategic materials, all of which have significant military and industrial applications.
In a further sign of intensifying friction, China has appointed a new trade envoy, Li Chenggang, to handle the growing standoff with the US.
Meanwhile, a Gallup-style flash poll in the United States shows divided public opinion on who will back down first in this tariff war, as both economic heavyweights stand firm.
Observers have expressed concern that such aggressive protectionist moves could destabilise global trade, complicate monetary policy responses, and fuel inflation, with US Federal Reserve Chair Jerome Powell recently warning of the “tension” between employment goals and inflation control.
With no immediate signs of reconciliation and both sides locked in a retaliatory loop, the ongoing trade dispute is expected to have far-reaching implications for global markets and diplomatic relations.
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