China warns US tariffs bringing instability, uncertainty to the world
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China cautions that the United States' tariffs could possibly send the world into an economic recession, even triggering humanitarian crises in poorer nations.
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Wang Wentao, Commerce Minister speaks during a press conference on the sideline of the National People's Congress in Beijing, China, Thursday, March 6, 2025 (AP)
US tariffs will “inflict serious harm” on poorer nations, China’s Commerce Minister Wang Wentao warned, according to a statement from the ministry released Saturday.
The warning came amid escalating tit-for-tat tariffs between Washington and Beijing, fueling concerns of a deepening trade war between the world’s two largest economies in a conflict that has rattled global markets.
Economists caution that disruptions in trade between the closely linked US and Chinese economies could drive up consumer prices and potentially trigger a global recession.
"These US 'reciprocal tariffs' will inflict serious harm on developing countries, especially the least developed countries, and could even trigger a humanitarian crisis," Wang told World Trade Organization chief Ngozi Okonjo-Iweala during a call on Friday, the statement said.
"The United States has continuously introduced tariff measures, bringing enormous uncertainty and instability to the world, causing chaos both internationally and domestically within the US," Wang added.
China announced Friday that it will raise tariffs on US goods to 125% but signaled it would no longer respond to any additional US levies, arguing that purchasing American products no longer makes economic sense under the current conditions.
Additionally, Beijing said it would file a complaint with the WTO over the new wave of tariffs and brushed off Trump’s aggressive tactics as a "joke" and a "numbers game."
The latest Chinese countermeasures triggered renewed turbulence in financial markets, with stocks fluctuating, gold prices climbing, and US Treasury bonds facing pressure.
Trade between the two giants remains significant, with China exporting over $500 billion worth of goods to the US last year, representing 16.4 percent of its total exports, according to Chinese customs figures.
Despite China’s retaliatory tariffs, Trump insisted on Friday that his trade policy was "doing really well."
'China wants a deal,' Trump claims
Trump on Wednesday described China as the "biggest abuser" in trading history, accusing Beijing of profiting heavily at America's expense. Speaking to reporters at the White House, Trump said China made $1 trillion off trade with the United States in 2024, a situation he called "not right."
"China was by far the biggest abuser in history," Trump stated. "A deal can be made with every one of them. A deal is going to be made with China. A deal is going to be made with every one of them. And there'll be fair deals. I just want fair deals," he added.
Later, Trump said he is open to meeting with Chinese President Xi Jinping, calling him a "friend."
"Sure, I’d meet with him [Xi]," Trump told reporters. "He's a friend of mine. I like him, President Xi, I like him. I respect him."
Trump also commented on the possibility of reaching an agreement with Beijing, suggesting that China is interested in negotiations but struggling with how to proceed.
"China wants to make a deal. They just don't know how quite to go about it. It's one of those things. They are quite proud people, and President Xi [Jinping] is a proud man. I know him very well, and they don't know quite how to go about it, but they'll figure it out in the process of figuring it out," Trump said.
Read more: China refuses subjugation, will continue defending interests: Official
