China‘s foreign ministry on Friday said that it strongly disagrees with the threat of an additional 10% tariff from the US. The ministry said that they will take all necessary steps to safeguard their interests. Beijing’s response came shortly after US President Donald Trump announced fresh 10% tariff on China would start on March 4.
Trump said that the tariff was due to the high and unacceptable levels of drug flow from North American countries, with China allegedly involved in the supply. This new tariff follows a previous 10% duty that was put in place earlier this month and is part of Trump’s larger strategy targeting technology and investment.
This additional 10% tariff on China on top of the 10% tariff that was imposed earlier in the month of February. Lin Jian, the spokesperson of China’s foreign ministry, said on Friday that the US is using the fentanyl issue as an excuse to threaten China. He also stated that there are no winners in trade and tariff wars.
Trump’s fresh announcement on additional tariffs took the Chinese officials by surprise. These new tariffs are set to begin on Tuesday, which is just one day before Chinese President Xi Jinping attends the National People’s Congress, the biggest political meeting of the year. Jinping’s team will present their economic plan for the year 2025 in this meeting.
While the tariffs probably won’t change China’s growth targets or financial policies for the year, it can quite directly affect the public sentiment negatively.
In a meeting on Friday, China’s elite Politburo, reiterated their promise to push domestic demand and bring stability to the housing and stock markets. These are the topics that might be discussed at the upcoming meeting.
The Chinese president hasn’t spoken to Trump since he took office.