Chinese authorities believe that some in the US “have reached the point of losing their minds” to save their “unilateral hegemony”, in response to the new imposition of tariffs announced yesterday by Joe Biden. Valued at 18 billion dollars, it seeks to protect the American industry by taxing everything from Chinese electric cars – they will bear a 100% tariff – to their steel and aluminum – 25% – or their semiconductors – 50% -.
The trade battle is seen from Beijing as a “typical case of bullying”, which shows a “loss of self-confidence” and that is “out of one’s mind”, the Chinese Foreign Minister, Wang Yi, said this Wednesday. The representative has asked that other countries also condemn the tariffs, ensuring that “at this crucial moment in economic recovery, the world community should tell the US to stop creating new problems.”
The tariffs have been seen as a response to the large-scale landing of Chinese products that undermine competition and lower prices, as they are highly subsidized at origin, always according to Washington. It is something that is especially seen with electric cars, which are cheaper than their North American and European counterparts.
The Chinese Ministry of Commerce assured in a statement this Tuesday that it “will take decisive measures to safeguard its own rights and interests.” The new tariffs announced also include batteries, solar panels and critical minerals. It is the culmination of a review of his predecessor Donald Trump’s tariff increases, none of which were reversed.
In response to Trump’s tariff increases starting in 2018, Beijing has tried a tit-for-tat approach, trying to match the size and scope of the US measures, but analysts expect a more limited response this time. This would avoid a further escalation and, in the process, not be one of the focuses in the presidential campaign.
