China Shows It Will Not Retaliate Now on New US Tariffs
China stated that it would not immediately retaliate against the recent US tariffs rise announced last week by President Donald Trump, stressing the need to discuss methods to de-escalate the trade war between the two largest economies in the world.
“China has sufficient means of retribution, but believes they need to discuss the issue now is the removal of fresh tariffs to avoid an escalation of the trade war,” Gao Feng, spokesperson for trade, informed journalists in Beijing on Thursday. “China is holding official talks on the issue with the United States.”
When questioned if that implied that China would not retaliate at all for the recent US escalation, Gao did not clarify but reiterated the same remarks. China has struck back every prior US tariff rise, so not reacting in kind this moment can show a shift in approach.
Regarding Tariffs, Stock losses across Asia and European stocks increased with U.S. equity futures as shareholders perceived the remarks as an olive branch from Beijing intended to get the discussions back on track. Gao said that both parties are debating China’s earlier announced journey to Washington in September.
Gao’s comments appeared amid indications that China’s economy continued to slow down as fragile national circumstances in August. The downshifting is obvious in the Bloomberg Economics Gauge, which aggregates the oldest accessible indices from financial markets and companies.
The U.S.-China Tariffs
Earlier this month, the U.S. announced fresh tariff levels for $300 billion of Chinese products, which will fall into the impact of September and December. Beijing then retaliated last week, declaring greater import taxes on its own.
In conclusion, That spurred Trump’s response, who tweeted that the current 25 percent tariffs on some $250 billion of Chinese imports would increase to 30 percent on 1 October, the 70th anniversary of the creation of the People’s Republic of China. He also raised the scheduled $300 billion levies on Chinese products due on Sept. 1 and Dec. 15 even greater.
“The escalation of the trade war will not help China, the U.S., or the globe,” Gao said. “The most significant thing is to generate the required circumstances for continued talks.”