China responded on Tuesday (4) to the tariffs imposed by Donald Trump on product imports of the country with similar measures against fuel, vehicles and agricultural machinery from the United States, at the start of a new trade war between the two largest economies on the planet. The Asian country also filed a complaint with the World Trade Organization (WTO) “to defend its legitimate rights and interests” against the imposition of tariffs on Chinese products in the United States.
Beijing’s retaliation was announced minutes after President Donald Trump’s additional tariffs of 10% on Chinese imports went into effect. In addition to China, Trump also announced tariffs against Canada and Mexico, set at 25%. However, the implementation of these measures was suspended for 30 days. In exchange, the two countries agreed to increase surveillance and security at their borders to combat fentanyl trafficking.
China imposes tariffs, expands restrictions on the US
China's Ministry of Finance announced in a statement that it would impose tariffs of 15% on US coal and liquefied natural gas (LNG), and 10% on crude oil, agricultural machinery and some vehicle models. The measure is a response to the US's "unilateral increase in tariffs," the statement said.
Furthermore, according to Beijing, Trump's decision "seriously violates the rules of the World Trade Organization (WTO), does nothing to solve its problems, and undermines normal economic and trade cooperation between China and the United States." For this reason, the Ministry of Commerce filed a complaint with the WTO, as it considers that the measures adopted by Washington were "malicious in nature."
Additionally, in addition to the tariff response, Chinese authorities announced an investigation into the American group Alphabet, Google’s parent company, for violating anti-monopoly laws. They also included the fashion group PVH, owner of the Tommy Hilfiger and Calvin Klein brands, on a list of “unreliable entities.” The biotechnology group Illumina was also added to the same list.
Finally, Beijing announced new controls on the export of rare metals and chemicals, such as tungsten, tellurium, bismuth or molybdenum, used in various industries.
Truce with Mexico and Canada
Trump justified the new tariffs against the United States' three main trading allies as punishment for failing to do enough to stem the flow of illegal migrants and drugs into the United States.
However, the Republican announced last-minute agreements with Mexican President Claudia Sheinbaum and Canadian Prime Minister Justin Trudeau. The aim is to increase border surveillance. In addition, it was decided that the implementation of the new tariffs will be suspended for 30 days.
The US president said he planned to call his Chinese counterpart, Xi Jinping, in the next 24 hours to negotiate a similar deal. US authorities blame China for bringing fentanyl, a synthetic opioid 50 times more potent than heroin, into the country and responsible for nearly 75,000 overdose deaths in the country each year.
US, Mexico and Canada strengthen measures
According to US intelligence, China sends chemical components to Mexico, where cartels process them into fentanyl and ship the product to the United States. The Republican tycoon claims that China's ruling Communist Party has "subsidized Chinese chemical companies to export fentanyl."
Speaking about Mexico, Trump accused the government of having “an alliance” and providing “safe havens” for drug cartels. However, the measures against the neighboring country were momentarily suspended after a “very friendly” conversation with his Mexican counterpart.
Sheinbaum announced that Mexico will reinforce its northern border with 10,000 National Guard agents. The measure will be implemented immediately to combat drug trafficking, especially fentanyl. According to the Mexican president, Washington has committed to intensifying efforts to prevent arms trafficking. This is a long-standing demand from Mexico, which has already led the government to sue arms manufacturers in the United States.
In the case of Canada, Trudeau announced the mobilization of almost 10,000 agents to protect the border, the inclusion of cartels in the list of terrorist organizations and the appointment of a 'czar' to lead the fight against fentanyl.
*With information from AFP
Source: Notícias Agrícolas
