'Ready to fully offset shocks': China after Trump's 104% tariffs
What's the story
Chinese Premier Li Qiang has assured that China is well-prepared to counteract the potential economic impacts of United States President Donald Trump's unprecedented 104% tariffs on all Chinese imports.
This comes after White House Press Secretary Karoline Leavitt announced Trump will impose an astounding 104% in levies across all Chinese imports starting Wednesday.
"Countries like China, who have chosen to retaliate and try to double down on their mistreatment of American workers, are making a mistake," Leavitt told reporters.
Economic outlook
Li Qiang's confidence in China's economic resilience
Li Qiang expressed confidence during a phone call with European Commission President Ursula Von der Leyen, saying China's macroeconomic policies this year had been formulated to tackle uncertainties.
"China has considered various uncertain factors in its macro policy this year and has enough policy tools in reserve and is fully capable to counter external shocks," Li said.
Trade relations
Li criticizes Trump's tariffs as unilateralism and protectionism
Li also slammed Trump's imposition of reciprocal tariffs on China and Europe as an example of unilateralism, protectionism, and economic coercion.
"Protectionism leads nowhere — openness and cooperation are the right path for all," Li told Von der Leyen during their conversation.
He further said that the measures taken by China are not only to safeguard its "own sovereignty, security and development interests, but also to defend international trade rules and international fairness and justice."
China
China was already set to experience 34% tariffs
As part of Trump's "reciprocal" tariffs package, China was already scheduled to experience a 34% increase in tariffs on Wednesday.
But Trump added another 50% after Beijing failed to back down from its promise to levy 34% retaliatory tariffs on US goods by midday Tuesday, totaling an additional 84% in levies.
Earlier Tuesday, China's Commerce Ministry stated that it "firmly opposes" the additional 50% taxes on Chinese goods, calling them "mistake upon a mistake," and vowed to escalate its retaliation.
Retaliation plans
EU is still formulating a response
While Beijing has firmly reacted to Trump's tariffs, the EU is still considering its response.
On Wednesday, its members will vote on steps to respond against the United States' steel and aluminum tariffs. It intends to announce a response to the "reciprocal tariffs" and vehicle duties next week.
Nonetheless, anxious of getting caught up in the aftermath of a tariff war, Von Der has "called for a negotiated resolution to the current situation, emphasizing the need to avoid further escalation."