China vows to retaliate against new US tariffs as trade tensions escalate

The Chinese commerce ministry on Tuesday voiced opposition against the measures announced by US President Donald Trump, saying the countermeasures were aimed at safeguarding its rights and interests.

The Trump administration has argued that China supplies chemicals used in fentanyl production. China has denied wrongdoing.

The US has “shifted the blame” and is using its problems with deadly drug fentanyl as an excuse to impose tariffs, the ministry said in a statement.

“China is strongly dissatisfied with this and firmly opposes it, and will take countermeasures to resolutely safeguard its own rights and interests,” the statement added.

Trump has announced 25 per cent tariffs on Canada and Mexico on the same grounds while the tariffs on China are slated to be an additional 10 percent, making it a cumulative 20 percent. The measures are slated to go into effect on Tuesday.

Another 10 per cent tariff on Chinese goods has already taken effect on February 4.

China has accused the US of exerting “tariff pressure and blackmail” after President Donald Trump announced additional tariffs on imports from the world’s second-largest economy.

Washington has “used the fentanyl issue to insist on tariff pressure and blackmail,” Reuters quoted Chinese foreign ministry spokesperson Lin Jian as having said.

“It has created a serious impact, pressure, coercion, and threat to the dialogue and cooperation between the two sides in the field of drug control,” she added, warning that this would backfire.

The US exports of farm goods to the Chinese market have declined over the years, especially after Trump’s first term in office. The tariffs on imports from the country might drive the prices of consumer goods up, denting Trump’s campaign promise of reining in inflation. They might also start a trade war between the two biggest economies in the world, affecting markets all across the globe.