Bangkok: US President Donald Trump and China sparred over tariff hikes and other retaliatory moves on Tuesday, as governments elsewhere were brainstorming strategies to cope with the trade war between the global economic giants.
China said it will “fight to the end” and take countermeasures against the United States to safeguard its own interests after President Donald Trump threatened an additional 50 per cent tariff on Chinese imports in retaliation for Beijing’s backlash against the 34 per cent tariffs he ordered on his April 2 “Liberation Day”.
“The US threat to escalate tariffs on China is a mistake on top of a mistake and once again exposes the blackmailing nature of the US. China will never accept this,” the Commerce Ministry said in a statement read on state-run broadcaster CCTV.
When asked about the possibility of talks between Washington and Beijing, Chinese Foreign Ministry spokesperson Lin Jian said: “I think what the US has done doesn’t reflect a willingness for sincere dialogue. If the US really wants to engage in dialogue, it should adopt an attitude of equality, mutual respect and mutual benefit.”
Meanwhile, Chinese state-run companies were told to help support the country’s financial markets after they were hit by massive saves of selling on Monday.
While world markets calmed somewhat after frenzied selling over two trading sessions that wiped out trillions of dollars worth of wealth, leaders in Asia shifted into damage control mode.
Japanese Prime Minister Shigeru Ishiba spoke with Trump late Monday and then convened a task force Tuesday to mitigate damage from the 24 per cent US tariffs imposed on Washington’s biggest ally in Asia.
Economic Revitalisation Minister Ryosei Akazawa was appointed lead trade negotiator and senior officials were dispatched to Washington to follow up on the Ishiba’s talk with Trump.
Ishiba told his ministers to do their utmost to get Trump to reconsider and also to mitigate the impact from the US “reciprocal” tariffs, which he said would be a blow to all industries, Chief Cabinet Secretary Yoshimasa Hayashi told reporters.
India’s Foreign Minister S. Jaishankar spoke with his US counterpart Marco Rubio late Monday, pitching for an early conclusion of negotiations for a bilateral trade agreement.
India, which faces a 26 per cent tariff on its exports to the US, is hoping for concessions as part of the trade deal.
A first tranche of the agreement is expected by this fall. Washington wants India to allow more open market access for US dairy and other farm products, but New Delhi has balked at that since farming employs the bulk of India’s workforce.
India’s Trade Minister Piyush Goyal planned to meet with exporters Wednesday to gauge the potential impact and cushion the economy from the tariffs.
A State Department statement said Rubio and Jaishankar discussed ways to deepen collaboration, the tariffs and “how to make progress toward a fair and balanced trade relationship”.
Malaysian Prime Minister Anwar Ibrahim said his government and other Southeast Asian countries would send officials to Washington to discuss the tariffs and it was working to build a consensus on a unified response among the 10 members of the Association of Southeast Asian Nations as they convened an investment conference in Kuala Lumpur.
“We do not believe in megaphone diplomacy,” Anwar said, “As part of our soft diplomacy of quiet engagement, we will be dispatching together with our colleagues in ASEAN our officials in Washington to begin the process of dialogue.”
Still, he chided the US, saying Malaysia’s trade with the US had long been a model of mutual gain, with its exports supporting Malaysia’s growth as well as high-quality jobs for Americans.
The 24 per cent tariff recently imposed on Malaysian imports was “harming all” and might have negative impact on both economies, he said.
Anwar said Malaysia would stick to a policy of diversifying its trade at a time of uncertainty over globalisation and changing supply chains.
In Hong Kong, which has a free-trade policy and operates as a free port with few trade barriers, Chief Executive John Lee echoed Beijing in blasting Trump’s tariffs as “bullying” and “ruthless behaviour” he said had damaged trade and raised global uncertainty.
Lee said the former British colony, which came under Beijing’s control in 1997 but has limited autonomy, would draw closer to the Chinese mainland, sign more free trade agreements and strive to attract more foreign investment to help blunt the impact of the higher US duties.
