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Trump imposes 10 percent tariff on Chinese imports as Beijing weighs response

President Donald Trump has followed through on his campaign promise to raise tariffs on Chinese imports, imposing a 10% duty on all Chinese goods. This move, part of a broader trade policy that also targets Mexico and Canada, has left Beijing considering its response while maintaining a cautious approach.

Caught in the middle of a national holiday, Chinese officials vowed to file a complaint with the World Trade Organization and take "corresponding countermeasures" but did not specify how. The Ministry of Commerce condemned the tariffs as a violation of WTO rules, stating that China would "resolutely defend its rights." Unlike Mexico and Canada, which quickly announced retaliatory tariffs, China's initial reaction has been more restrained.

Trump's relationship with China during his second term has been unexpectedly cordial. He has expressed interest in negotiating with Chinese President Xi Jinping, particularly on issues such as Ukraine, and has suggested a potential trade deal. This has led analysts to believe that Beijing may hold off on aggressive retaliation, opting instead for a strategic wait-and-see approach.

The tariffs, set to take effect on Tuesday, differ from the 25% duties imposed on Mexico and most Canadian imports. China is also awaiting the results of a broader review of U.S.-China trade relations, expected by April 1, which could lead to further economic measures. Some analysts predict that Trump is using this as leverage to test China's willingness to negotiate.

While Beijing has not yet announced specific countermeasures, it has options. In Trump's first term, China retaliated with tariffs on $185 billion worth of U.S. goods. The Biden administration later maintained these tariffs while focusing on restricting China's access to key technologies with military applications. In response, China tightened export controls on critical minerals and semiconductor-related products, which could be expanded if tensions escalate.

Chinese media has downplayed the impact of the new tariffs, noting that exports to the U.S. account for only 3% of China's GDP and less than 15% of its total exports. Economists argue that China has already reduced its reliance on the U.S. by diversifying trade partners, investments, and financial systems. Keyu Jin, an economist at the London School of Economics, stated that China has been preparing for reduced exposure to the U.S. and has redirected trade to other countries.

Despite the tariffs, Beijing views Trump as a leader open to negotiation, providing an opportunity for diplomacy before relations deteriorate further. With the potential for additional economic penalties looming, China is carefully assessing its next move while leaving the door open for discussions. Whether it retaliates or seeks a deal remains uncertain, but for now, its response suggests it is treading cautiously in the face of Trump's trade policy.

Source: CNN World

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