The trade war has began as President Donald Trump’s taxes on Chinese goods has sparked a response from President Xi Jinping
China has hit back at the US after President Donald Trump imposed a tariff on items shipped from the East Asian country.
The new POTUS implemented the tariffs as he seeks to tackle what the White House has described as an ‘extraordinary threat posed by illegal aliens and drugs, including deadly fentanyl’.
When it comes to China specifically, a press release from the White House claimed Chinese officials had ‘failed to take the actions necessary to stem the flow of precursor chemicals to known criminal cartels and shut down money laundering by transnational criminal organizations’
February 4, 2024 – the day Trump‘s trade war began, and within minutes of the tariffs taking effect, President Xi Jinping retaliated.
What are tariffs?
President Donald Trump has started a trade war with China after imposing a 10 percent tariff on goods shipped from the East Asian country (Chip Somodevilla/Getty Images)
Tariffs are taxes imposed on foreign goods, meaning many of these goods will cost more to sell in the US – so ultimately, the consumer will pay.
Advanced countries fell out of favor with tariffs following World War II, because they often lead to ‘reduced trade, higher prices for consumers, and retaliation from abroad’, the Council on Foreign Relations reports… which is what we’ve seen from China.
On Saturday (February 1), Trump signed an executive order to impose 25 percent tariffs on imports from Canada and Mexico, while all energy resources from the US’ northern neighbor faced just a 10 percent tariff, as well as an additional 10 percent tariff on shipped goods from China – coming into play today (February 4).
China’s response to Trump’s tariffs
Jinping has hit back at Trump following levies imposed on Chinese goods by the US (ANTHONY KWAN/POOL/AFP via Getty Images)
China’s Finance Ministry has announced plans to impose taxes of 15 percent on coal and liquified natural gas from the US, as well as a 10 percent levy on crude oil, farming equipment and some cars. These will come into play on Monday (February 10).
The nation has also released a statement detailing plans to investigate Google.
It read: “Because Google is suspected of violating the Anti-Monopoly Law of the People’s Republic of China, the State Administration for Market Regulation has initiated an investigation into Google in accordance with the law.”
Meanwhile, the Chinese Commerce Ministry and its Customs Administration claimed it was also imposing export controls to ‘safeguard national security interests’ on tellurium, molybdenum, tungsten, ruthenium and ruthenium-related items.
UNILAD has contacted Google for comment.
Why Trump imposed tariffs on China, Canada and Mexico
Trump speaks with Chinese President Xi Jinping after a handshake at the G20 Summit in Osaka, back during Trump’s first term in charge (KIM KYUNG-HOON/AFP via Getty Images)
The Republican claims Canada, Mexico and China pose an ‘extraordinary threat’ due to the number of ‘illegal aliens and drugs’ smuggled into the States, and even constitutes it as a ‘national emergency’.
In regards to China specifically, the White House added: “In response to China’s intellectual property theft, forced technology transfer, and other unreasonable behavior, President Trump acted with conviction to impose tariffs on imports from China, using that leverage to reach a historic bilateral economic agreement.”
It all stems from a talk he gave to the House GOP (Grand Old Party, otherwise known as the Republican Party) retreat in Florida, toward the end of last month.
There he vowed to end federal income taxes, in favor of taxing foreign countries through tariffs – which he has done so far with China, while suspending the taxes imposed on Canada and Mexico’s shipped goods after both agreed to send more forces to the border.
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