Trump Warns No Country Will Escape Tariffs Amid Trade War Tensions

US President Donald Trump has issued a stern warning, making it clear that no country, including China, will be “getting off the hook” when it comes to tariffs, as tensions between the world’s two largest economies continue to rise.

The escalating trade conflict, which began with Trump’s global tariff strategy, has seen tariffs on Chinese imports soar to 145%, while China has retaliated with a 125% levy on US goods. The situation has created a volatile back-and-forth exchange, with both sides using tariffs as a bargaining chip.

While the US administration had recently introduced temporary exemptions for certain Chinese-made electronic products like smartphones, laptops, and semiconductors, Trump clarified that these would only be short-lived. He emphasized on his Truth Social platform, “NOBODY is getting ‘off the hook’… especially not China which, by far, treats us the worst!”

China’s Response and Global Trade Impact

China’s government responded by pushing for the complete removal of tariffs, calling the latest US move “a small step.” Chinese President Xi Jinping, currently on a Southeast Asia tour, warned that protectionism would lead nowhere, advocating for the preservation of the multilateral trade system and stable global supply chains.

Despite Beijing’s diplomatic efforts, Trump remains firm in his stance, with the US administration targeting additional tariffs on sectors crucial to US national security, such as semiconductors. Trump’s comments on Air Force One highlighted his desire for the US to produce more critical technology domestically, including semiconductors and pharmaceuticals.

The temporary relief provided by tariff exemptions for tech giants like Nvidia, Dell, and Apple may be short-lived. Trump signaled that tariffs on semiconductors are likely to be introduced soon, with details expected in the coming weeks.

Market Reactions and Economic Concerns

The announcement of exemptions led to a temporary boost in Asian stock markets, but uncertainty looms. The US economy has already felt the impact of Trump’s tariffs, with financial markets reacting negatively, including a plunge in consumer confidence. Critics, including several Wall Street billionaires, argue that the tariff strategy has caused more harm than good.

China Seeks Alternatives

In the midst of the trade tensions, China is expanding its economic influence in Southeast Asia, with Xi visiting Vietnam, Malaysia, and Cambodia. The Chinese government is positioning itself as a stable alternative to the US, courting nations that may be unsettled by the volatile economic environment created by Trump’s tariffs.

Despite the harsh rhetoric, Trump remains optimistic about securing a deal with China, though his trade representative, Jamieson Greer, stated that no new talks are planned between Trump and Chinese President Xi Jinping at this stage.

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Sourced:EWN