Beijing, China – In response to the United States imposing an additional 10 percent tariff on goods imported from China, Beijing announced plans on Sunday to bring a lawsuit against the U.S. at the World Trade Organization (WTO). The Chinese Ministry of Commerce also stated that it would take necessary counteractions to protect China’s interests and rights. This move, according to the Ministry, will not resolve the underlying issues facing the U.S. and will disrupt the existing economic and trade relations between the two nations.
According to experts, this tariff increment will have a marked effect on both American and Chinese industries. A spokesperson from the Chinese Ministry highlighted that the U.S.’s unilateral decision blatantly contradicts WTO regulations. The Ministry has appealed to the U.S. to approach its domestic issues, including the fentanyl crisis, with a more objective and rational attitude, rather than threatening tariffs on other nations.
Zhou Mi, a researcher from the Chinese Academy of International Trade and Economic Cooperation, noted that the new tariffs would inevitably increase the costs of Chinese goods for American companies, particularly those that rely on Chinese intermediate products and materials. This price hike is likely to ripple throughout the supply chains, potentially leading to over a 10 percent price surge for U.S. consumers on specific products.
Moreover, Zhou pointed out that Chinese exporters are set to face serious challenges, as American importing firms might push for renegotiations on prices to cover the additional expenditures. The Foreign Ministry stated that China has conveyed strong disappointment and resolute opposition to the U.S.’s recent tariff imposition, vowing to take all necessary steps to firmly defend its lawful rights and interests.
Trade confrontations, as consistently argued by Chinese authorities, benefit no one. The Foreign Ministry has also criticized the U.S.’s justification of tariffs over the fentanyl issue, asserting that China has among the most stringent drug regulation policies globally and has supported the U.S. in managing its drug problems in a spirit of humanitarianism.
Amid these tensions, trade statistics reveal the gravity of the situation. In December, U.S. seaports saw a 14.5 percent year-on-year increase in container traffic from China, translating to roughly 451,000 40-foot containers, as per Descartes Systems Group. Companies had reportedly been stockpiling goods anticipatively due to the looming tariff threats.
In the past year alone, despite profound challenges, U.S. imports of various Chinese products, including machinery and toys, surged by 15 percent from the previous year. Jonathan Gold, President of Supply Chain and Customs Policy at the National Retail Federation, confirmed that some U.S. firms had indeed been advancing their import schedules in anticipation of these tariff impositions and potential port strikes.
Since the initial tariffs introduced by the Trump administration in 2018 and subsequently maintained and expanded by President Joe Biden’s administration, U.S.-China trade has been significantly impacted. Data from the Peterson Institute for International Economics in Washington, DC, points to a decline in bilateral trade from $659 billion in 2018 to $578 billion in 2024.
Thomas Fullerton, an economics professor at the University of Texas at El Paso, suggested that a more beneficial approach for the U.S. could have been to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, arguing that tariffs act as trade barriers and may decrease domestic competitiveness.
Furthermore, the U.S. implemented a 25 percent tariff on goods from Mexico and Canada, with a 10 percent tariff specifically on Canadian energy products.
This article was automatically written by Open AI. Facts, people, and events mentioned may not be accurate. Requests for corrections or retractions can be sent to [email protected].