China pushes back: Stands firm against Trump's trade tactics
Chinese Foreign Minister Wang Yi called for resistance against what he described as a "bully," referring to U.S. President Donald Trump. The diplomat warned against giving in to the Republican's demands on tariffs. Bloomberg notes that China is seeking to position itself as a bastion of free trade.
Wang Yi, the head of China's Ministry of Foreign Affairs, cautioned at a Monday BRICS group meeting that yielding to the tariffs imposed by Donald Trump's administration would only embolden the "bully," referring to the U.S. President.
"The United States, which has long benefited immensely from free trade, is now going so far as to use tariffs as a bargaining chip to demand exorbitant prices from all countries," said Wang Yi.
During a meeting of senior diplomats in Brazil, he stated that if individuals choose to remain silent, compromise, and hide, it will only encourage the "tyrant" to push his limits further, according to Bloomberg.
China as a bastion of free trade
Bloomberg notes that China is attempting to present itself as a "bastion of free trade" globally. Experts suggest that the Chinese are trying to demonstrate strength and determination, avoiding any appearance of weakness against the U.S. However, this does not mean Beijing is unwilling to pursue a deal with Washington to limit or eliminate tariffs.
The Chinese government is considering suspending the 125% tariff on some American goods imported from the U.S. Additionally, on Monday, Chinese officials announced that they would offer greater support to exporters affected by American tariffs, such as providing loans for companies. Furthermore, Beijing promised to lower interest rates.
Since April, American tariffs on goods from China have increased to 145%, leading to a 60% decrease in the transport of goods. As a result, by mid-May, many companies, including Walmart and Target, may face product shortages and rising prices.
Sean Stein from the U.S.-China Business Council recently told NBC News that goods are expected to start running out within a few weeks. Empty shelves may resemble the early days of the COVID-19 pandemic when supply chains were disrupted, and new solutions had not yet been established.
The sight of empty ports on the U.S. West Coast raises concerns about Donald Trump's trade war, reports "Fortune" magazine.
