On Wednesday, American President Donald Trump hinted that a trade deal was “possible” between the US and China. China stands to be a key target of the US’ current tariff policy by Trump.
Back in 2020 too, the US had agreed to a “great trade deal” with China, Trump told Air Force One. AFP News Agency reported that Beijing’s foreign ministry had responded that the trade tensions between the two nations should be handled with “mutual respect.” It added that China and the US should look to settle their concerns based on equality, dialogue, and consultation.
Trump’s Tariff Threats
On returning to power for the second term, Donald Trump began threatening China, Mexico, Canada, and the EU with sweeping tariffs. While he halted the tariffs on Mexico and Canada and granted them a one-month reprieve, the Chinese tariffs were levied.
In February, he slapped additional customs duties of 10 percent on all products imported from China.
“Trade and tariff wars have no winners and only serve to damage the interests of people all over the world,” ministry spokesman Guo Jiakun said at a regular press briefing.
Trump’s tariff threats also include 25% tariffs on imported cars and the same or higher duties on pharmaceuticals and semiconductors. He also told Air Force One that his administration was considering lumber tariffs of “maybe 25 percent” in the coming months.
New Tariffs On Metals
Last week, Trump also announced 25% tariffs on steel and aluminum imports, to come into effect on March 12.
Japan, a key ally of the US has requested Washington for an exemption on these tariffs. , underlining the importance of the auto industry.
Experts are worried that Americans may be most affected by the US tariffs as they are the ones who pay the cost of tariffs.
Within the 27-nation EU, Germany has by far the largest trade surplus with the United States, largely thanks to its automobile industry and chemical giants such as Bayer and BASF, according to the European statistics agency, Eurostat.
