Trump’s 60% tariffs will ‘backfire’ on US and drive up prices, China warns

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Trump’s 60% tariffs will ‘backfire’ on US and drive up prices, China warns
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Vice Commerce Minister Wang Shouwen said that would “not solve the country’s own trade deficit problem.”

Higher tariffs on Chinese exports will backfire, just increasing prices paid by consumers, while China can manage to weather the impact of such “external shocks,” a senior Commerce Ministry official said Friday in Beijing.

China is willing to talk with the U.S. on a basis of mutual respect, for the benefit of both countries, Wang said. Despite the upbeat message, the threat of higher tariffs, following on increases during Trump’s first administration and additional hikes in import duties by the administration of President Joe Biden, threatens to add to Beijing’s woes as China’s ruling Communist Party struggles to revive growth and reverse a downturn in the property market and deal with mounting local government debts and high employment among Chinese youths.

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