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Can China keep raising tariffs on US as trade war continues ?

While China relies on the US for high-end imports, the country has also invested in technology to reduce reliance on products from outside.

By Ranjit MondalPublished 10 months ago 3 min read

Can China Keep Raising Tariffs on the US as the Trade War Continues? Beijing's Statement Many observers are wondering how much further China can go in raising tariffs on American goods as trade tensions between China and the United States continue. Recent remarks made by Beijing shed light on the nation's future strategy in light of the prolonged economic impasse between the two countries. Rising Tariffs: A Key Tool in the Trade War

Since the trade war erupted in 2018, China and the U.S. have imposed waves of tariffs on each other’s goods, affecting hundreds of billions of dollars in trade. While the Biden administration has kept many of the Trump-era tariffs in place, it has also considered new measures aimed at protecting key American industries such as semiconductors, clean energy, and electric vehicles. In response, China has indicated it will not hesitate to act in kind.

Beijing continues to use tariffs as one of its primary tools in the ongoing conflict. China has imposed retaliatory duties on a wide range of U.S. exports, including industrial goods and energy resources as well as agricultural goods like corn and soybeans. Can China Keep Raising Tariffs?

China still has room to grow economically. Officials have suggested that China may expand the scope of its countermeasures, despite the fact that the United States exports to China fewer goods than it imports, giving Beijing fewer items to target. This could include:

levying higher tariff rates on existing goods. incorporating high-tech or niche markets into the list of targeted goods. putting in place non-tariff barriers like requiring licenses, inspections, or more stringent approvals from regulators. However, raising tariffs is not without risks. Overreliance on trade penalties could strain China’s domestic economy, especially as it seeks to rebound from the pandemic and stimulate consumption. Businesses that rely on U.S. components or raw materials could suffer as a result of an ongoing tariff increase. What Beijing Has Said

In recent official statements, Chinese government spokespeople have reiterated that China "reserves the right to respond with all necessary measures" if the U.S. escalates trade restrictions. The Ministry of Commerce has accused Washington of employing tariffs and sanctions to contain China's rise in key industries and issued a warning against what it refers to as "economic coercion." During a press briefing last week, a spokesperson stated, “China urges the United States to stop politicizing trade issues and return to dialogue and cooperation. If the U.S. insists on increasing trade barriers, we will take resolute countermeasures to defend our legitimate rights and interests.”

This language suggests that, despite China's readiness to escalate further, it prefers to keep negotiation channels open, particularly if there is a way to minimize economic harm to both parties. The Wider Perspective In the end, the trade war is about more than just tariffs. It's also about competition in other areas of geopolitics, industrial policy, and technological dominance. As the U.S. tightens controls on semiconductor exports and restricts investment in Chinese tech, Beijing may focus less on tit-for-tat tariffs and more on long-term strategies: diversifying supply chains, bolstering domestic innovation, and strengthening ties with non-Western markets.

China has the option of raising tariffs on the United States indefinitely, but doing so comes at a cost to the economy and diplomatic relations. The future of the trade relationship may depend less on duties and more on whether one country is willing to shift toward de-escalation as each side tests the other's resolve. Beijing's message is clear right now: it won't back down, but it is still keeping an eye on what Washington does next.

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