China now faces up to 245% tariffs

China now faces tariffs up to 245% on imports to the United States due to its retaliatory actions, the White House has said, as the trade war escalated between the world’s two largest economies.

It is the only country to have hit back with tit-for-tat levies.

Trump said on Tuesday that China “just reneged on the big Boeing deal, saying that they will “not take possession” of fully committed to aircraft”.

China earlier retaliated with 84% levies and imposed restrictions on imports of some US films, expressing its interest in holding dialogue with Washington to resolve the issue. On Wednesday, China appointed Li Chenggang, who has decades of experience handling international negotiations and also served as China’s ambassador to the WTO.

The Chinese military criticised the US for increasing its defence budget to USD one trillion, saying that “wanton use of force won’t make America great again”.

Meanwhile, Chinese leader Xi Jinping has promised Malaysia and Vietnam greater access to Chinese markets as he tours Southeast Asia.

“China welcomes more high-quality agricultural products from Malaysia and encourages Chinese companies to invest and start businesses in Malaysia,” Xi said in his meeting with Malaysia’s king, Sultan Ibrahim Iskandar, on Wednesday, according to the official Xinhua News.

He also mentioned further developing cooperation in green tech and AI.

Global trade may fall by 0.2 %

The World Trade Organisation says the volume of trade in goods worldwide is likely to decrease by 0.2 per cent this year due to Trump’s shifting tariff policies and a standoff with China, but it would take a more severe hit if Trump carries through on his toughest “reciprocal” tariffs. The decline will be particularly steep in North America even without the stiffest tariffs.

US critical minerals probe

Trump has ordered a probe into potential new tariffs on all US critical minerals imports, a major escalation in his dispute with global trade partners. The order lays bare what manufacturers, industry consultants, academics and others have long warned Washington about: that the US is overly reliant on Beijing and others for processed minerals.