China on tariffs: 'US seeking hegemony in the name of reciprocity in trade war'

China on Monday (Apr 7) commented on the reciprocal tariffs announced by US President Donald Trump and said that the US was aiming for "hegemony in the name of reciprocity" through its massive tariffs programme.

"The US is seeking hegemony in the name of reciprocity, sacrificing the legitimate interests of all countries to serve its own selfish interests, and prioritising the US over international rules," foreign ministry spokesman Lin Jian said, adding, "This is typical unilateralism, protectionism and economic bullying."

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Donald Trump imposed 54 per cent tariffs on Chinese goods and in response, China imposed a retaliatory 34% tariff on all imports from the United States. Additionally, China’s commerce ministry also said that it would impose more restrictions on the export of rare earths, which are used in hi-tech manufacturing such as batteries and electric vehicles. In its first reaction to the tariffs, China’s State Council Tariff Commission said, "This practice of the US is not in line with international trade rules, seriously undermines China’s legitimate rights and interests, and is a typical unilateral bullying practice." 

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As the Chinese imposed retaliatory tariffs, Trump responded on Truth Social and said: "CHINA PLAYED IT WRONG, THEY PANICKED – THE ONE THING THEY CANNOT AFFORD TO DO!"

A report in The Guardian quoted Wang Wen, the dean of Renmin University of China’s Chongyang Institute for Financial Studies who said, "China will never give in to Trump, but it does not exclude cooperation with the United States at the level of mutual respect and win-win cooperation. China knows that cooperation is not sought, but fought for." Wang alos added that China’s response was “restrained” and limited to trade measures.

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Trump's tariff announcements led to market slump

Trump’s announcement on Wednesday (Apr 2) led to a plunge in world financial markets and fuelled fears of a global recession. Despite massive dips in American as well as global markets, Trump defended his tariff strategy and said that the dips showcased that the "medicine" of his trade tariff strategy was working.

"Sometimes you have to take medicine to fix something," Trump told reporters aboard Air Force One as he returned to Washington from a weekend of golfing in Florida, adding that trade partners are "coming to the table" and "want to talk."

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(With inputs from agencies)