China Rejects US Tariff Hike As Trade Tensions Resurface

China has criticized the United States for imposing steep tariffs on its products, with a foreign ministry spokesperson stating Thursday that Washington’s 245% tariff rate ‘no longer makes economic sense’.

According to China’s state-run Xinhua news agency, the spokesperson added that if the US continues to manipulate tariff figures, Beijing will not respond to what it called a ‘numbers game’.

The comment follows a statement from the White House highlighting that China is now subject to tariffs as high as 245% on certain US imports. These penalties, the White House said, were in response to China’s own retaliatory trade measures.

Tensions escalated after Beijing directed its airlines to halt new Boeing aircraft deliveries, a move linked to the US’s earlier decision to impose 145% tariffs on Chinese goods.

Despite the standoff, the White House stated that President Trump remains open to negotiating a new trade deal with China.

However, it emphasized that the next step should come from Beijing.

“More than 75 countries have already reached out to discuss new trade deals. As a result, the individualised higher tariffs are currently paused amid these discussions, except for China, which retaliated,” the White House stated.

US Accuses China Of Restricting Key Mineral Exports

The White House also accused China of restricting exports of key minerals such as gallium, germanium, and antimony – materials considered vital for high-tech and military-related industries.

A recent report by S&P Global Ratings warned that such trade disputes come with no winners.

It cautioned that ongoing tensions between the US and China could trigger economic instability and geopolitical risks.

With many Asia-Pacific nations relying heavily on trade with both countries, the region finds itself in a complex position.

While it depends on China and the US for economic growth, it also leans on the US for security, the report noted.

In response, governments across the Asia-Pacific are now exploring regional trade blocs and bilateral agreements.

These initiatives aim to reduce exposure to future trade shocks and encourage a shift in supply chains.

Meanwhile, China’s economic momentum is facing increased pressure.

The trade spat with the US is weakening its export-driven growth, while a sluggish domestic market and ongoing real estate crisis continue to undermine investor confidence.

Also Read: California Sues Trump Administration Over Tariffs; Cites Economic Harm