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China vows ‘countermeasures’ to Trump tariff, keeps door open for talks

BEIJING – China’s government on Sunday denounced the Trump administration’s imposition of a long-threatened 10% tariff on Chinese imports while leaving the door open for talks with the U.S. that could avoid a deepening conflict.

Beijing will challenge President Donald Trump’s tariff at the World Trade Organisation, and take unspecified “countermeasures” in response to the levy, which takes effect on Tuesday, China’s finance and commerce ministries said.

That response stopped short of the immediate escalation that had marked China’s trade showdown with Trump in his first term as president and repeated the more measured language Beijing has used in recent weeks.

Trump on Saturday ordered 25% tariffs on Canadian and Mexican imports and 10% on goods from China, saying Beijing needed to stanch the flow of fentanyl, a deadly opioid, into the United States.

China’s toned-down response marked a contrast with the direct retaliation and heated language from Canada, a long-time U.S. ally, and Mexico, the top destination for U.S. exports.

China’s commerce ministry said in a statement that Trump’s move “seriously violates” international trade rules, urging the U.S. to “engage in frank dialogue and strengthen cooperation.”

Filing a lawsuit with the WTO could allow Beijing a win in messaging by standing up for the rules-based trading system long advocated by U.S. administrations of both parties. Beijing has taken the same step in a challenge to tariffs of up to 45% on Chinese-made electric vehicles by the European Union.

At the same time, a WTO appeal poses no immediate cost or threat to Washington.

In the meantime, China has been preparing for the long-expected Trump move on tariffs for months by deepening ties with allies, pushing for some self-reliance in key areas of technology and setting aside funds to prop up its economy.

 

Source
Reuters

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