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Trump imposes 10% tariff on Chinese imports, escalating trade tensions with Beijing

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Illustration/ The Information

Tsering Dhundup

DHARAMSHALA, Feb.3: The newly sworn U.S. President Donald Trump has imposed a 10% tariff on all Chinese imports, as part of a broader trade strategy that also includes harsher measures against countries like Mexico and Canada. The announcement, made on Saturday, marks the latest escalation in U.S.-China trade tensions and is expected to take effect on Tuesday.

In response, China has condemned the move as a violation of World Trade Organisation (WTO) rules and vowed to take “corresponding countermeasures”, though specifics remain unclear. The Chinese Ministry of Commerce released a statement on Sunday, asserting that China will “resolutely defend its rights” under international trade agreements. However, Beijing’s reaction has been notably measured compared to the immediate and decisive retaliatory actions pledged by Mexico and Canada which faces 25% tariffs.

Unlike Mexico and Canada, which previously enjoyed a nearly duty-free trade relationship with the U.S., China had already been subject to numerous tariffs imposed during Trump’s first term. The new duties come at a critical time for Beijing, as the country grapples with slowing economic growth and increased global scrutiny of its trade and technology policies.

In a related development, Trump addressed concerns over China’s growing influence in the Panama Canal. He reaffirmed that the canal belongs to Panama, not China, and underscored the U.S.’s commitment to regional stability. On February 2, U.S. Secretary of State Marco Rubio met with Panamanian President José Raúl Mulino and Foreign Minister Javier Martínez-Acha.

Following these talks, Mulino announced a delay in China’s Belt and Road Initiative projects in the country, making Panama the first Latin American nation to officially halt such Chinese-backed infrastructure plans.

Experts say that the latest tariffs could be the opening of a renewed trade war between the world’s two largest economies. Experts also warn that these trade conflicts could lead to job losses, increased consumer prices, and significant impacts on ordinary citizens, despite Trump’s assertion that short-term difficulties would yield long-term economic benefits.

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