After a spiralling trade dispute with President Donald Trump, China has announced its decision to hike the import duties on electric cars and a list of other goods accounting for $34 billion, which come from the United States of America. The Chinese government said that it was merely responding in "equal scale" to Trump's tariff hike on Chinese goods in a conflict over Beijing's trade surplus and technology policy that companies worry could quickly escalate and chill global economic growth.
Commenting on the decision to hike import duty for American electric cars, China's Commerce Ministry's statement said that China "doesn't want a trade war" but has to "fight back strongly". On the other hand, Global Times, a newspaper published by the ruling Communist Party, wrote, "In this trade war, it's the U.S. who is playing the role of provocateur, while China plays defence." It also added, "China is a powerful guardian and has enough ammunition to defend existing trade rules and fairness."
Currently, China and the United States have the world's biggest trading relationship. Despite that Beijing's industry development tactics, which are claimed to violate its free-trade pledges and hurt American companies, are straining the official ties between the two countries. In fact, China's other trading partners like - Europe, Japan and few others, have also expressed similar concerns, but Trump has been unusually direct about challenging Beijing and threatening to disrupt such a large volume of exports.
When a car is sent to the United States from China, there is a Tariff to be paid of 2 1/2%. When a car is sent to China from the United States, there is a Tariff to be paid of 25%. Does that sound like free or fair trade. No, it sounds like STUPID TRADE - going on for years!— Donald J. Trump (@realDonaldTrump) April 9, 2018
Early this year in April US President Donald Trump has tweeted, "When a car is sent to the United States from China, there is a Tariff to be paid of 2 1/2 per cent. When a car is sent to China from the United States, there is a Tariff to be paid of 25 per cent. Does that sound like free or fair trade. No, it sounds like STUPID TRADE - going on for years!"
I am against import duties in general, but the current rules make things very difficult. It’s like competing in an Olympic race wearing lead shoes.— Elon Musk (@elonmusk) March 8, 2018
Even American electric carmaker Tesla's CEO, Elon Musk, commenting on China's import duties, tweeted, I am against import duties in general, but the current rules make things very difficult. It's like competing in an Olympic race wearing lead shoes," replying to Trump's earlier tweet on wanting China to develop a plan for the year of a One Billion Dollar reduction in their massive Trade Deficit with the United States.
Beijing will impose an additional 25 per cent tariff starting July 6 on 545 products from the United States. Chinese regulators also are considering a tariff hike on an additional 114 products including medical equipment and energy products, the Finance Ministry said. It said a decision would be announced later. This mirrors the Trump administration's announcement on Friday of a tariff hike on $34 billion of Chinese goods, also due to take effect July 6, and plans to consider widening it to an additional $16 billion of other products.