China and the European Union, even with different methods, have no intention of submitting to the Trump's tariff blackmail. On the one hand the China announced this morning that he wanted to further raise the bar in the trade war with Trump, with the decision to raise counter-tariffs on US goods from 84% to 125%, also looking for a shore in the European Union. On the other side Ursula von der Leyen he has no intention of tolerating the invasion in Europe di Chinese goods hit by US tariffs, while warning Trump that if the talks do not bear fruit, he will not hesitate to impose tariffs on big tech stars and stripes.
Xi responds to Trump: counter-tariffs rise from 84% to 125%,
After yesterday the White House he clarified that the taxes on Chinese products will increased to 145% this year, Beijing responds this morning which will increase tariffs on all US products from 84% to 125% starting April 12th, the Chinese Ministry of Finance announced. “Since American products are no longer marketable in China “With current tariff rates, if the United States were to further increase duties on Chinese exports, China would ignore such measures,” the statement read.
The Ministry of Commerce then added that the repeated recourse to customs duties excessively high demands from Washington have become little more than a numbers game, economically meaningless and mostly used as a tool for intimidation and coercion. "It's become a joke“, the ministry said. However, China warned that it “will resolutely counterattack and will fight to the end” if the United States continues to violate its rights and interests, adding that America should take full responsibility responsibility for damages caused by duties.
In recent days, tensions between Beijing and Washington have escalated well beyond customs duties, with repercussions on services and interpersonal relationships. On Thursday, Chinese authorities decided to reduce the number of American movies allowed in movie theaters. Officials also warned citizens against go to the United States and warned students of the risks to the safety in “some states”.
Xi would like a supporter in the EU
China, finding the door closed in the States, tries to knock on the European one, but that doesn't mean the EU is a good thing. China and EU “they should take charge of one's international responsibilities, keep together the trend of economic globalization and the international trade environment, and resisting unilateral abuses together“ he said the president Xi Jinping, meeting Spanish Prime Minister Pedro Sanchez in Beijing, the state agency reported Xinhua. China and the European Union should not only safeguard "their legitimate rights and interests”, but also “international fairness and justice, international norms and order”, taking into account that “there is no winner in a trade war and going against the world will lead to isolation” continued Xi Jinping.
These statements are giving the President of the Commission some headaches with the fear that the arrival of Chinese goods could trigger the already seen dumping again. On this point, the President of the European Commission Ursula von der Leyen has raised her shields. In this morning's interview with Financial Times says the EU “will not tolerate” Chinese goods hit by US tariffs being redirected to Europe, adding that Brussels “will adopt safeguard measures” if a new monitoring mechanism detects an increase in Chinese imports. Von der Leyen said she raised this point with Chinese Prime Minister Li Qiang in a phone call this week, and that he responded that “there is no such risk because it would stimulate consumption in China.”
The EU's Response to Trump's Tariffs: Taxing Big Tech
In the same interview with Financial Times la president of the Commission outlined what other measures theEuropean Union could take action against imports of US goods, if negotiations are not satisfactory, indicating as a priority objective the Big Tech USA.
Ursula von der Leyen said the EU would seek a “fully balanced” deal with Washington during Trump's 90-day pause in further tariffs. But if the negotiations with Donald Trump failing to put an end to his tariff war against Europe, the EU is ready to deploy its most powerful trade measures, including a digital advertising revenue tax which would hit technology groups like Meta, Google and Facebook. There's a huge US services surplus with the EU, he emphasizes and the President of the United States only counts the please in its trade data, excluding US services exported to the rest of the world. “Companies that offer services do good business in this (EU) market. And the vast majority of services, 80%, come from the United States. “We are developing retaliatory measures“, von der Leyen said, stressing that the exact measures will depend on the outcome of the talks with Washington.
Countermeasures are now on standby, but Trump is so far deaf
Just yesterday the Commission had suspended, pending negotiations with Washington, the retaliations planned against US duties on steel and aluminum, imposed last month. The measures would have affected about 21 billion euros of U.S. imports, including poultry, orange juice and yachts. Von der Leyen, who oversees trade policy on behalf of the EU's 27 member states, had already tried to negotiate with the United States, but was told to wait for Trump's April 2 announcement, which imposed a "reciprocal" 20% tariff on the EU. The President also publicly offered a tariff deal zero for zero on industrial goods, but it has had little traction in Washington, where officials have complained about alleged EU non-tariff trade barriers, as VAT and standard of European products.
Von der Leyen said this open to discuss standards alignment of the EU and the US, although, he added, it will produce limited results: “I think it is absolutely worth looking at where we can align our rules and our standards to make business easier. So I am open to that,” he told FT. “But we must not raise expectations too much, because….. often there are different standards because there are differences in lifestyle and culture“, has ruled out reviewing the “untouchable” regulations of the EU on digital content and he won't even negotiate VAT, which Trump says is equivalent to the sales tax in the United States.
“If the negotiations fail, the EU would automatically reactivate the measures retaliatory measures expected in response to US tariffs on steel and aluminium. In addition, von der Leyen said that further countermeasures to Trump's so-called reciprocal tariffs
EU also looks at other markets
Regardless of the outcome of negotiations with the United States, Trump's policies have radically reshaped global trade relations, says von der Leyen, stimulating the talks between the EU and powers such as Malaysia, Thailand, Philippines, Indonesia and United Arab Emirates. “[There is] interest from many countries around the world to work more closely with us, together, to balance the system and to have a free trade that really competes on quality and not on tariffs,” von der Leyen said. Both the United States and the European Union agree that World Trade Organization rules have failed to ensure a level playing field, as China subsidizes part of its manufacturing output, flooding global markets. The trade war has now prompted discussion on “how to modernise, reform and stabilise the WTO”. “But the emphasis must be on modernisation and reform, we cannot keep what we have today, because there are too many difficulties,” von der Leyen said. “In short, never waste a good crisis".
