BEIJING — China’s government denounced the Trump administration’s imposition of a long-awaited 10% tariff on Chinese imports on Sunday, but left the door open for talks with the US to avoid a deterioration in relations.
Beijing will challenge President Donald Trump’s tariff at the World Trade Organization as a symbolic gesture, as well as take unspecified “countermeasures” in response to the levy, which goes into effect on Tuesday, China’s finance and commerce ministries announced.
That response avoided the immediate escalation that marked China’s trade dispute with Trump during his first term, and it repeated Beijing’s more measured language from recent weeks.
On Saturday, Trump imposed 25% tariffs on Canadian and Mexican imports and 10% on Chinese goods, claiming that Beijing needed to stop the flow of fentanyl, a lethal opioid, into the United States.
China’s measured response contrasted with direct retaliation and heated language from Canada, a long-standing US ally, and Mexico, the top destination for US exports.
China’s commerce ministry said in a statement that Trump’s move “seriously violates” international trade rules, and it urged the US to “engage in frank dialogue and strengthen cooperation.”
Filing a lawsuit with the WTO could provide Beijing with a messaging advantage by defending the rules-based trading system long championed by both parties’ administrations in the United States. Beijing has taken the same step in its challenge to the European Union’s tariffs of up to 45% on Chinese-made electric vehicles.
At the same time, a WTO appeal carries no immediate cost or threat to Washington.
The WTO’s dispute settlement system has been effectively shut down since 2019, when Trump blocked the appointment of judges to handle appeals. Since President Barack Obama, the United States has claimed that the WTO appeals body has exceeded its authority.
‘America’s problem’
For weeks, Chinese foreign ministry spokesperson Mao Ning has stated that Beijing believes there will be no winner in a trade war.
Chinese officials have also been encouraged by signs that Trump may be seeking a more nuanced relationship with China following his conversation with Chinese President Xi Jinping last month.
Both Republicans and Democrats see China as the most significant foreign policy and economic challenge to the United States.
China’s massive trade surplus, which reached nearly $1 trillion last year, is a vulnerability for Beijing. China’s exports in key industries, including automobiles, have been growing faster in volume than value, implying that manufacturers are discounting to win overseas sales while domestic demand has been sluggish.
As a result, analysts expect China to try to reach an agreement with Trump as soon as possible in order to soften the impact of US trade actions.
China has also been preparing for the long-awaited Trump tariff move for months by strengthening ties with allies, promoting self-reliance in key technology areas, and setting aside funds to support a vulnerable economy.
China’s economy, the world’s second-largest, met its official 5% growth target last year, despite widespread complaints about declining job prospects and deteriorating living conditions.
China’s strongest retaliation on Sunday was over fentanyl, an issue in which the Biden administration had also urged Beijing to restrict shipments of the China-made precursor chemicals required to manufacture the drug.
“Fentanyl is America’s problem,” China’s foreign ministry declared. “The Chinese side has carried out extensive anti-narcotics cooperation with the United States and achieved remarkable results.”
