China warns new US tariffs to ‘severely’ impact relations: Report

Beijing, on Tuesday, warned that the imposition of new US tariffs on $18 billion worth of imports from the country could have a ‘severe impact’ on the relationship between US and China.

Written By Vaamanaa Sethi
First Published14 May 2024
USA and China
USA and China

Beijing, on Tuesday, warned that the imposition of new US tariffs on $18 billion worth of imports from the country could have a "severe impact" on the relationship between  US and China, as per a report by news agency AFP.

“This will severely affect the atmosphere for bilateral cooperation,” China's commerce ministry was quoted as saying by AFP.

Beijing urged the US to "promptly correct its erroneous actions and revoke the additional tariff measures imposed on China."

Also read: Top China, South Korea Diplomats Hold Rare Talks in Beijing

On Tuesday, the White House announced a tariff hike on $18 billion worth of imports from China, targeting key sectors such as electric vehicles, batteries, steel, and vital minerals.

This decision coincides with President Joe Biden's preparation for the upcoming November election, where he is expected to face Republican rival Donald Trump again. Administration officials criticized Trump's trade policies as they unveiled the tariff increase.

The tariff rate for electric vehicles is scheduled to increase fourfold to 100 percent this year, while the rate for semiconductors will rise from 25 percent to 50 percent by next year, according to the White House.

This action comes after a reassessment of tariffs implemented amid a trade dispute between Washington and Beijing, during which former President Trump imposed levies on approximately $300 billion worth of Chinese goods.

The so-called Section 301 investigation served as the principal basis for the tariffs under the Trump administration, and the US Trade Representative is obligated to assess the impact of these levies every four years.

Also read: China to Hold Meeting on $138 Billion Ultra-Long Debt Sale

In response to the announcement, Beijing expressed strong opposition, issuing stern objections. It accused Washington of politicizing and manipulating economic and trade matters, labeling it as a classic instance of political manipulation.

“China expresses its strong dissatisfaction with this. China will take resolute measures to defend its own rights and interests,” the commerce ministry said. The statement emphasized that the 301 tariffs are not aligned with the consensus reached by the two heads of state, alluding to a meeting between Presidents Xi Jinping and Biden last year.



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