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Topline
Chinese President Xi Jinping expressed strong disapproval of the tariffs implemented by the Trump administration, advocating for the preservation of “the multilateral trading system.” His remarks were made on the same day that President Donald Trump hinted at potential short-lived exemptions on electronic device tariffs, which have positively impacted stock market recovery.
During Xi’s two-day diplomatic visit to Vietnam, he was welcomed alongside Vietnam’s General Secretary of the Communist Party, To Lam, as they reviewed a guard of honor at the Presidential Palace in Hanoi.
Key Facts
As part of his visit, Xi published an op-ed in state media in both China and Vietnam. In this article, he reiterated his belief that “trade wars and tariff conflicts yield no winners; protectionism is a path to nowhere,” sidestepping direct references to the United States.
The Chinese leader emphasized the importance of collaboration between China and Vietnam to support the Global South and maintain a robust multilateral trading system, stable global industrial and supply chains, and promote an open and cooperative international atmosphere.
His statements came shortly after Trump and his advisors suggested that tariff exemptions for electronic devices would not last long and would likely fall under a different tariff category in the near future.
This change in direction on tariff exemptions was conveyed in a recent post by Trump on Truth Social, where he asserted that no one would evade tariffs, highlighting ongoing evaluations of the semiconductor and overall electronics supply chain as part of upcoming National Security Tariff Investigations.
Furthermore, Trump reiterated that the 20% “Fentanyl Tariffs” on Chinese imports would persist for electronics as well.
Are Any Talks Scheduled Between Xi And Trump On Tariffs?
In an interview with CBS News, U.S. Trade Representative Jamieson Greer mentioned that there are currently no scheduled discussions between Trump and Xi regarding the escalating tariff situation. He noted that recent communications have been maintained at the leadership level since early April and expressed hope for a future dialogue.
What Has Beijing Said About The Tariff Exemptions On Electronics?
In response to the recent tariff exemptions announced by U.S. Customs and Border Protection, China’s Commerce Ministry labeled them as a “minor step” aimed at rectifying what they consider unilateral and reciprocal tariffs. They called for the complete removal of these levies while evoking a Chinese proverb that implies the conundrum should be resolved by those who initially created it.
What Do We Know About China’s Bid To Court Allies In The Trade War?
Xi’s diplomatic trip to Vietnam closely follows his earlier meeting with Spanish Prime Minister Pedro Sanchez in Beijing, where he called on the European Union to join forces with China against what he termed unilateral aggressive practices. On Monday, Chinese Foreign Ministry Spokesperson Lin Jian condemned U.S. tariffs as a “tool for pursuing selfish interests,” claiming they adversely affect global economies, including China and the EU. Lin affirmed China’s readiness to collaborate with the EU in defending fair international trade rules. Following his visit to Vietnam, Xi is expected to travel to Malaysia and Cambodia.
Key Background
Recently, Trump enacted an executive order that increased reciprocal tariffs on products imported from China to 125%, following China’s response to his earlier tariff increase. Along with this elevated tariff, a 90-day suspension was announced for additional reciprocal tariffs against other nations. The White House confirmed that this new 125% charge on Chinese goods would be in addition to a previously established 20% tariff related to the fentanyl crisis, culminating in a total of 145%. In turn, China raised its tariffs on U.S. imports to match this rate and indicated a lack of further responses to escalated tariffs from the U.S., asserting that they would not react to future tariff hikes.
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)
Source
www.forbes.com