The US President, Donald Trump has remained true to his word in putting America first. During his 2016 presidential campaign, he told voters that he will make America great again. To keep with his word, the president has in some reviews in regards to trade, for instance, introducing tariffs on the importation of components for washing machines. Recently, Trump signed new tariffs for steel and aluminum metal, a move that has caused an uproar to countries or regions exporting the metal to the US.
Some of the nations faced by tariffs are China, the European Union, Mexico and Canada. Canada has so far been exempted from the tariffs while the EU is looking for a forum to which it could also be exempted. Experts claim that the new tariffs may solicit a global trade war although affected China said on Sunday that it would not participate in any trade war against America.
China’s Minister of Commerce Statement
Zhong Shan, China Minister of Commerce stated on the sidelines of China’s annual parliamentary session that it will not engage in a trade war with the US. He guaranteed that China will fight for its interests amid growing American protectionism. He added that there are no winners in a trade war as the war will bring disaster to both the warring parties and in turn also affect trade in the world.
Shan repeated that China does not wish to participate in a trade war. He also reiterated that China will not initiate a trade war but will handle any challenges brought against it in a bid to defend their national interests.
The minister made his latest statement to try and address the Sino-US economic trade and cooperation problem alluding to the fact that Trump plans to introduce the heavy tariffs on imported aluminum and steel. Trump’s initiative is well welcomed in the US with many steel companies asserting that more employment opportunities will be created by the move.
Trump announced on Thursday that he is introducing the 25% tariff on steel and 10% tariff on aluminum but temporarily exempting big exporters of the product. They include Canada and Mexico.
China’s First Reaction
When the US President first brought up the new progress, Chinese leaders threatened to retaliate against the new tariffs although to date have not taken any action. But latest developments in China shows that the country has reviewed its stance and decided not to retaliate.
Instead, Zhong stated that China will continue to relax market access despite their 20% trade deficit with the US. He added that they will also make intellectual property right important. The two scenarios have caused tensions between the two countries before.