Topline
China’s President Xi Jinping criticized the Trump administration’s tariffs and called for the protection of “the multilateral trading system,” on Monday, as President Donald Trump signaled that the exemptions put in place for tariffs on electronic devices—which have spurred a recovery in the stock market—will be short-lived.
Key Facts
Xi, who is on a two-day diplomatic trip to Vietnam—which was targeted with a presently-suspended 46% U.S. tariff rate—penned an op-ed carried by state media in both countries.
In the op-ed, the Chinese leader reiterated an earlier stance that the “Trade war and tariff war will produce no winner, and protectionism will lead nowhere,” without directly mentioning the U.S.
Xi said China and Vietnam should “work together with the Global South” and “resolutely safeguard the multilateral trading system, stable global industrial and supply chains, and open and cooperative international environment.”
Xi’s comments were made hours after Trump and his aides indicated that the tariff exemptions announced on electronic devices are likely to be short-lived and they will soon be covered under a different tariff “bucket.”
The latest apparent flip-flop on tariff exemptions was made in a Truth Social post by Trump on Sunday, where he said that nobody was getting “off the hook” and his administration is “taking a look at Semiconductors and the WHOLE ELECTRONICS SUPPLY CHAIN in the upcoming National Security Tariff Investigations.”
The president also indicated that the previously announced 20% “Fentanyl Tariffs” on China will remain in effect for electronic device imports from the country.
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Are Any Talks Scheduled Between Xi And Trump On Tariffs?
In an interview with CBS News on Sunday, United States Trade Representative Jamieson Greer said Trump and Xi “don’t have any plans” to speak to each other amid the escalating tariff fight. “Since April 2, we have this at the leaders’ level, and at some point, as President Trump has pointed out, we expect that we’ll be able to have a conversation with them,” Greer told the network.
What Has Beijing Said About The Tariff Exemptions On Electronics?
China’s Commerce Ministry on Sunday said the tariff exemptions on electronic devices announced by the U.S. Customs and Border Protection last week are a “small step” to “correct the wrong practice of unilateral ‘reciprocal tariffs’.” The Ministry then urged the U.S. to “completely cancel” the levies. The spokesperson’s statement indicated Beijing was waiting for the U.S. to make a move on the matter first, as it cited a Chinese proverb which said: “The one who tied the bell must untie it.”
What Do We Know About China’s Bid To Court Allies In The Trade War?
Xi’s trip to Vietnam comes just days after the Chinese leader met with Spanish Prime Minister Pedro Sanchez in Beijing and urged the European Union to side with Beijing and jointly “oppose unilateral bullying practices.” On Monday, Chinese Foreign Ministry Spokesperson Lin Jian described the U.S. tariffs as a “weapon for seeking selfish gains” that intends to damage the interests of “economies around the world, including China and the EU.” Lin then noted that Beijing is “ready to work” with the EU to jointly defend “the rules of international trade, fairness and justice.” After his Vietnam visit, the Chinese President is set to fly to two other Southeast Asian countries, Malaysia and Cambodia.
Key Background
Last week, Trump signed an executive order raising reciprocal tariffs on Chinese imports to 125% in response to Beijing’s decision to match the president’s earlier tariff hike of 84%. Alongside the hike targeting China, the president also announced a 90-day pause on the expanded “reciprocal tariffs” announced against other nations. The White House then confirmed that the 125% levy on Chinese imports will sit on top of a 20% tariff that was put in place by Trump earlier due to China’s alleged role in the fentanyl crisis—bringing the total number to 145%. China on Friday issued another tit-for-tat response on Friday raising its tariffs on U.S. imports to 125%. Chinese officials also signaled they will not respond to any further escalations in the tariff rate by the U.S., saying, “If the US continues to play the numbers game of tariffs, China will ignore it.” No further tariff escalations have been announced by either side since.
Further Reading
The White House’s 8 Big Tariff Flip-Flops Since ‘Liberation Day’ (Forbes)
China Raises US Tariffs To 125%—Xi Urges EU To Back Beijing’s Pushback Against ‘Unilateral Bullying’ (Forbes)
