BANGKOK (AP) - U.S. President Donald Trump and China engaged in a war of words over tariff increases and retaliatory measures on Tuesday. As tensions continued, governments worldwide were formulating strategies to manage the repercussions of the ongoing trade war between the United States and China, which are considered two of the largest economies globally.
China has declared its intention to "fight to the end," asserting that it will take countermeasures to protect its interests after President Trump proposed an additional 50% tariff on Chinese imports. This measure was in direct response to China's backlash against the 34% tariffs he imposed on April 2, which he labeled "Liberation Day." The Chinese Commerce Ministry characterized the U.S. threat to escalate tariffs as a "mistake on top of a mistake," claiming it reflects the coercive nature of U.S. policy and stating that China would never accept such actions.
In response to the escalating tensions, the Chinese Foreign Ministry spokesperson, Lin Jian, commented that the U.S. actions do not indicate a genuine willingness to engage in dialogue. He emphasized that if the U.S. truly desires negotiations, it must approach discussions with an attitude of equality, respect, and mutual benefit. On the domestic front, Chinese state-run companies were directed to support the national financial markets, which experienced significant selling pressure following the announcement of tariffs.
While global markets showed signs of stabilization after a period of frantic selling that resulted in the loss of trillions in value, Asian leaders undertook measures to contain the fallout. Japanese Prime Minister Shigeru Ishiba had a conversation with President Trump on Monday and convened a task force to mitigate the impact of the 24% U.S. tariffs imposed on Japan, a key ally in Asia. Economic Revitalization Minister Ryosei Akazawa was named the lead trade negotiator, and senior officials were dispatched to follow up on Ishiba's discussions with Trump.
Ishiba urged his ministers to exhaust all options to persuade Trump to reconsider the tariffs, which he emphasized would adversely affect all sectors. Meanwhile, India's Foreign Minister S. Jaishankar spoke with U.S. counterpart Marco Rubio, advocating for the swift conclusion of a bilateral trade agreement. India, grappling with a 26% tariff on its exports to the U.S., is seeking concessions in the negotiations. The first segment of this agreement is anticipated by the fall. The U.S. expects India to open its markets further to American dairy and farm products, a request that has met resistance from New Delhi due to the significance of the agricultural sector in employing the country's workforce.
India's Trade Minister Piyush Goyal planned to engage with exporters to assess the tariffs' potential effects on the economy. A State Department announcement noted that Rubio and Jaishankar discussed enhancing collaboration and the tariffs’ implications, seeking to establish a fairer and more balanced trade relationship.
In Malaysia, Prime Minister Anwar Ibrahim declared that his administration and other Southeast Asian nations would send officials to Washington to address the tariffs. He highlighted the need for a unified response among the 10-member Association of Southeast Asian Nations (ASEAN), emphasizing the importance of "soft diplomacy" instead of aggressive rhetoric. Anwar criticized the U.S. tariffs, stating that they have detrimental effects on both the Malaysian and U.S. economies and that the trade relationship had previously fostered mutual benefits.
Additionally, Chief Executive John Lee of Hong Kong criticized Trump’s tariffs, describing them as "bullying" that has harmed trade and heightened global uncertainty. Lee indicated that Hong Kong, characterized by its free-trade policy with minimal barriers, would strengthen ties with mainland China, sign more trade agreements, and aim to attract additional foreign investment to mitigate the impact of the increased U.S. tariffs.
