It appears that the main target of Trump's tariff regime is China. President Trump has threatened to add another 50 percent tariff on China in response to China's retaliatory action on the heavy tariff imposed on the second largest economy by the new Trump administration.
It will be recalled that 34 percent tariff on Chinese goods was slammed on China on April 3, and two separate tariffs of 10 percent before then. Even though trade of goods between China and the United States has long slowed down, the latest 50% addition will not make any difference as the damage has been done already.
If Trump sticks to his plan for an additional 50 percent tariff on China, unless China reconsiders to withdraw its retaliatory levies on the United States, total new U.S. duties on Chinese goods this year could rise to 104 percent. It is doubtful if China will succumb.
Economic experts observed that the U.S. still has a $500 billion surplus with China in services trade. These surpluses according to them, can be zeroed in, this time as China's new gift to the NASDAQ.
They said the more the US-China ties are broken, the more China becomes resilient in an era of bullying.
Meanwhile, in reaction to the latest threat of additional 50 percent "reciprocal" tariff on China, China's Ministry of Commerce (MOFCOM) said on Tuesday it has noticed that the US threatened to impose a further 50 percent tariff on China, and that "China strongly opposes this.
If the US escalates tariffs, China will resolutely take countermeasures to safeguard its own rights and interests," a spokesperson for the ministry said.
China further said the US' imposition of so-called "reciprocal tariffs" is groundless and a typical unilateral bullying practice.
The MOFCOM spokesperson added that the countermeasures China has taken are aimed at safeguarding its sovereignty, security and development interests and maintaining the normal international trade order, and are completely legitimate, he noted.
The spokesperson further maintained that "The US' threat to escalate tariffs on China is a grave mistake on top of an existing one, which once again exposes the US' blackmail nature.
China will never accept this. If the US insists on its own way, China will fight to the end," the spokesperson said.
Earlier, China's ministry of commerce in a statement emphasized that U.S. moves disregarded the balance of interests reached in multilateral trade negotiations over the years and the fact that it has long benefited greatly from international trade.
The bottom line in all these trade wars is that tariffs might sound like a quick fix, but history shows they often backfire,
hurting consumers and straining global trade.
Economic strength comes from innovation, not isolation. Already, there is looming global recession as a result of Trump's sweeping "liberation day" tariffs on both friends and foes around the globe.
Sale is Global South Affairs Analyst based in Abuja.
