China Presses US to Fully Remove Tariffs Amid Escalating Trade Tensions
The Chinese government has issued a direct appeal to the United States to "completely cancel" the wide-ranging tariffs imposed by the Trump administration, as economic tensions between the world's two largest economies continue to escalate.
The statement, released by China’s Ministry of Commerce, came just days after US President Donald Trump announced a 90-day pause on certain global tariffs but simultaneously increased levies on Chinese imports to a staggering 145%. Chinese officials criticized the so-called “reciprocal tariffs,” urging the US to “correct its mistakes” and return to the “right path of mutual respect.”
While the White House appeared to offer a partial concession by exempting select electronics, including items manufactured in China from the latest round of tariffs, the situation remains fluid. US Commerce Secretary Howard Lutnick clarified that these exemptions are temporary and would be reevaluated under a separate “semiconductor tariff” to be announced soon.
President Trump quickly addressed the confusion via social media, denying any broad exemptions. Instead, he claimed that the products in question were being reassigned under a different “Tariff bucket” as part of a broader National Security Tariff Investigation that would target the entire electronics supply chain.
Mixed Signals Cloud Trade Outlook
These conflicting statements have injected new uncertainty into US-China trade negotiations, particularly regarding critical sectors like semiconductors, smartphones, and computers. The Chinese Commerce Ministry referred to the exemptions as merely a “small step” and confirmed that Beijing is still “evaluating the impact” of Washington’s latest decisions.
Further complicating matters, Trump administration officials have indicated no immediate plans for direct talks with Chinese President Xi Jinping. US Trade Representative Jamieson Greer told CBS’s Face the Nation that no call between the two leaders was currently scheduled.
Rising Tariff Rates Escalate Tensions
The tit-for-tat measures have intensified rapidly. The US began April by imposing a 54% tariff on Chinese goods, increasing it to 145% within weeks. In response, China raised tariffs on American imports to 125%, with the latest hike taking effect on Saturday.
China has warned it will "fight to the end" if the US continues what it called a "provocation of a tariff war." The ministry said it remained committed to protecting its economic interests amid growing global concerns about the ripple effects of the dispute.
Recession Fears and Market Volatility
As analysts warn of a potential US recession, markets have responded with sharp fluctuations. American businesses, particularly in technology and retail, are growing increasingly concerned about rising import costs and unstable policy direction.
Trump maintains that the tariffs are a necessary tool to negotiate better trade terms and bring manufacturing jobs back to the US. However, critics argue that the approach is damaging global supply chains and undermining investor confidence.
More clarity is expected when Trump elaborates on the exemptions and new tariff strategies early next week. Until then, businesses and governments alike are bracing for more turbulence in an already volatile trade environment.