The US tariff rate on Chinese imports now effectively totals 145 percent, the US has clarified. Meanwhile, China warned that it will not flinch when it comes to a trade and tariff war.
On Friday, China's commerce minister Wang Wentao held discussions with his Saudi Arabian and South African counterparts to exchange views on responding to the United States' "reciprocal tariffs".
China is open to dialogue with the US but this must be on the basis of mutual respect and equality, an official said. The statement came a day after US President Donald Trump told media that "China wants to make a deal. They just don't know how quite to go about it."
Here's what we know so far about US-China trade war
1. Total hikes in US-China trade war
Trump has now raised the tariff on Chinese goods five times since taking office in January. The first two hikes of 10 percent each were met with what analysts described as a measured response from China that left the door open for talks.
Trump then announced an additional 34 percent duty on Chinese goods last week in his 'Liberation Day' speech. China matched that with a 34 percent tariff on imports from the US.
Trump then added a 50 percent tariff on goods from China, saying negotiations were terminated. That brought the cumulative US tariff on Chinese goods to 104 percent. China responded by raising the tariff on American products by the same amount, bringing its total rate to 84 percent.
Then Trump further hiked the American tariff to 125 percent, saying it would take effect “immediately”.
Now, a White House official confirmed on Thursday that the US tariff rate on Chinese imports now effectively totals 145 percent as Trump's 125 percent tariff comes on top of a 20 percent fentanyl-related tariff that Trump previously imposed on China.
3. China flays US at WTO meeting
Earlier on Wednesday, China expressed grave concern and firm opposition to the United States' "reckless" tariffs at the World Trade Organization (WTO). The "reciprocal tariffs" will never be a cure for trade imbalances. Instead, they will backfire, harming the US itself, China said.
China's commerce ministry said on Thursday that China is open to dialogue with the US but this must be on the basis of mutual respect and equality.
"Pressure, threats and blackmail are not the right way to deal with China," ministry spokesperson He Yongqian was quoted by Reuters as saying when asked about whether the world's two largest economies have started tariff negotiations. China will "follow through to the end" if the US insists on its own way, the spokesperson said.
4. China speaks with Saudi Arabia, South Africa
China's commerce minister Wang Wentao held discussions with his Saudi Arabian and South African counterparts to exchange views on responding to the United States' "reciprocal tariffs", the Chinese ministry said on Friday. China discussed strengthening bilateral economic and trade cooperation with these two countries.
5. ‘Dumping US government bonds’
Traders said Japan and China may be dumping US government bonds and that the developments could be concerning to the White House.
6. Trump’s China tariff critics ‘insane’
US Vice-President JD Vance accused some of Trump’s China tariff critics of being "insane". “President Trump wants peace, but also wants fair trade and more self-reliance for the American economy,” he added.
