China Accuses America of ‘Contradictory Stances’ Over Tariff Threat

Trump’s most recent threat to introduce an additional full import duty on products from China has been labeled a “typical example” of American hypocrisy, as stated by the Chinese government.

A official from China’s Commerce Ministry further commented that the nation could introduce its own undisclosed “retaliatory steps” if the White House occupant carries out his warning, adding that the country was “not afraid” of a possible trade war.

Last Friday, Donald Trump hit back at Beijing’s move to strengthen its regulations for exports of rare earth minerals, alleging the Chinese leadership of “becoming very hostile” and attempting to hold the global community “hostage”.

Additionally, he threatened to cancel a planned summit with China’s President Xi Jinping, which was set for a meeting in South Korea later this month.

His statements on that day shook stock exchanges, with the S&P 500 closing down over two and a half percent, marking its steepest fall since April.

His comments renewed apprehensions of a trade conflict between the United States and China.

Earlier this year, the respective governments had agreed to remove triple-digit tariffs on each other’s imports, which had led to concerns of bilateral trade stopping between the two nations.

Consequently, United States levies on Chinese imports facing an extra import tax compared with the start of the year, while US goods entering China are subject to a 10% tariff.

China’s latest remarks – published by the Commerce Ministry in the manner of written responses to press queries – echoed language from the peak of the recent trade conflict.

Officials denounced American limits on exports on semiconductors and chips while supporting China’s own restrictions on exports on rare earths as “normal actions” to safeguard national security and that of every country.

The spokesperson stated that for “an extended period”, the United States had “overstretched the concept of state security, misused foreign shipment regulations and “enforced” biased policies against China.

“Resorting to trade levy ultimatums is not the proper method to engage with the Chinese government,” their representative said.

“The nation’s view” on a tariff war has consistently been consistent: we wish to avoid one, but we are unafraid of one.”

The previous week, the Chinese government revealed it was tightening overseas sale regulations on rare earths and additional substances critical for cutting-edge industry.

This was seen as a key move, as the nation refines about 90% of the world’s rare earths, which are utilized in items such as renewable energy components and handheld devices.

The recent comments from both governments are being seen by analysts as a means of strengthening positions ahead of future trade talks.

Is not yet known whether a summit between Trump and Xi Jinping, expected at a high-level meeting in the Republic of Korea later this month, will go ahead.