Trade War 2.0 Breaking - China Urges Dialogue To Resolve Dispute After Trump's 104% Tariff Blast

In a bid to de-escalate trade conflict with the United States, China on Wednesday expressed willingness to 'resolve disputes through dialogue and consultation' with America. The development has come hours after United States President Donald Trump announced to increase trade tariffs on China to 104%, coming into effect from today.

China, in its white paper, 'China's Position on Some Issues Concerning China-U.S. Economic and Trade Relations." urged for a dispute resolution via dialogue. However, it maintained its critical stance on Donald Trump's trade tariff announcement calling it an isolationist and coercive nature of the US.

"In response to the U.S. moves, China has taken forceful countermeasures to defend its national interests, and has remained committed to resolving disputes through dialogue and consultation, with multiple rounds of consultations with the U.S. side to stabilize bilateral economic and trade relations, according to the document," read a press release by People's Republic of China.

Beijing reacted sharply to the US tariffs announcement by Donald Trump on April 2 and retaliated with 34% additional tariffs on US imports.

'China Will Fight Till End'

Criticising America's trade tariffs announcement, spokesperson Lin Jian said that the indiscriminate imposition of tariffs by the United States seriously violates the legitimate rights and interests of other countries, seriously violates the rules of the World Trade Organization, seriously damages the rule-based multilateral trading system, and seriously impacts the stability of the global economic order.

"It is typical unilateralism, protectionism, and economic bullying, and has been widely opposed by the international community," Lin said on Tuesday.

The spokesperson also said that China will take all the required actions to safeguard its lawful rights and interests and will not hesitate in fighting till end if US ignores its interest.
"China will take necessary measures to resolutely safeguard its lawful rights and interests. If the United States ignores the interests of the two countries and the international community and insists on fighting tariff wars and trade wars, China will surely fight till the end," Lin added.

Donald Trump Imposes 104% Tariff on China

The reciprocal tariffs imposed by the United States on more than 108 countries took effect on Wednesday. Chinese goods were slapped with a massive 104% duties, sparking tensions of a full-blown global trade war.

On 2 April, Donald Trump had announced an additional 34% trade tariffs on Chinese imports, taking total levies imposed on Chinese goods to 54%. However, the US nearly doubled the tariff rates on China on Tuesday, escalating fears of a global trade war and spurring more widespread selling across global financial markets. US President had imposed a nearly 26% tariff on Indian imports based on the trade deficit. India compared to its other South Asian peers is on a comfortable situation as the US has imposed relatively higher tariffs on Vietnam, Thailant, etc.

German Finance Minister Joerg Kukies said that Europe's largest economy was at risk of another recession as a result of the trade tensions. Investment bank JP Morgan estimates there is a 60% chance of the world economy entering recession by year-end.

Fears of trade war has sent shockwave across the global stock markets. The Indian stock markets touched their March's low mark on Monday. The stock market crash on Monday aligned with declining global stock market prices due to Trump tariff announcement