Chinese Premier Li Qiang said his country has ample policy tools to “fully offset” any negative external shocks as President Donald Trump imposed an astounding 104% in tariffs across all Chinese imports on Wednesday, reported Bloomberg.
Li Qiang reiterated his optimism about the growth of the world’s second-largest economy in 2025, despite the latest tariffs from Donald Trump.
During a call with European Commission President Ursula Von der Leyen on Tuesday, Li said China’s macroeconomic policies this year have fully taken account of various uncertainties, according to an official readout. China is strongly confident about maintaining the country’s healthy and sustainable economic growth, Li, China’s No. 2 official after President Xi Jinping, said, the report added.
Also Read | Donald Trump hits China with 104% tariffs amid ongoing trade tensions
The call between Li and Ursula Von der Leyen came hours before both economies were set to be hit by Donald Trump’s so-called reciprocal tariffs. While Europe faces an added 20% levy, China was in line for a massive surtax totalling 104% starting 12:01 am April 9. A US official told Bloomberg on Tuesday the administration is indeed moving forward with that more-than-doubling plan.
During the call, Li reportedly criticised the punitive action on all American trading partners as a typical example of unilateralism, protectionism and economic coercion. He added that China’s firm response is not only to safeguard its own interests but also to defend international trade rules.
“Protectionism leads nowhere — openness and cooperation are the right path for all,” Li told Von der Leyen.
Hollywood Ban?
The Chinese government has pledged to retaliate against Washington’s “reciprocal” levies. In an illustration of the potential response, two influential Chinese bloggers on Tuesday posted an identical set of measures that authorities are mulling to hit back at the US, including duties on American farm goods and a ban on Hollywood movies.
In Washington, Trump claimed that “China also wants to make a deal, badly,” and said he’s waiting for Beijing’s call. Later, White House press secretary Karoline Leavitt told a press conference that the president “will be gracious” if China’s leadership reaches out.
US stocks dive after another stunning reversal
US stocks dove on Tuesday following another stunning reversal, with Wall Street veering from a huge gain at the opening of trading to more losses at the close, because investors still have no idea what to make of Donald Trump’s trade war, which is scheduled to kick into a higher gear after midnight, news agency Associated Press reported.
After blasting to an early gain of 4.1%, which would have marked its best day in years, the S&P 500 quickly lost all of it. It then careened to a loss of 3% before paring its drop to 1.6%. That left the index, which sits at the heart of many investors’ 401(k) accounts, nearly 19% below its record set in February.
The Dow Jones Industrial Average lost 320 points, or 0.8%, after erasing an earlier surge of 1,460 points, while the Nasdaq composite dropped 2.1%, AP reported.
(With inputs from agencies)
