China promises to fight the US over tariffs. What the media is writing
Chinese authorities have said they will fight the tariffs imposed by US President Donald Trump. Beijing has taken a number of measures to support the market and slow the decline in stock markets. At the same time, Trump threatened to raise total duties on Chinese goods above 100%. What the media write about the unfolding trade war is in the Izvestia digest.
BBC News: Trump threatens China with new tariff
Trump has threatened China with additional 50 percent tariffs on goods imported into the United States if Beijing does not lift the 34 percent tariff. In a post on Truth Social on April 7, Trump gave China until the next day to cancel the countermeasures or it would face an even bigger levy. He also warned that all negotiations with China regarding the meetings he requested would be terminated.
BBC News
If Trump implements his threat, American companies could face a total rate of 104% on Chinese imports, on top of the 20% duties already imposed in March and the 34% announced last week. There are concerns that this could escalate a trade war between the world's two largest economies and global competitors.
Trump said he had warned China that the introduction of countermeasures against the United States would lead to additional and significantly higher duties. The president noted that Washington would negotiate with Beijing and other countries to conclude a "fair and good deal."
Bloomberg: China has promised to "fight to the end" with Trump's tariffs
China has promised to take retaliatory measures in response to Trump's latest threat of tariffs and has stepped up efforts to support the market. The sharp reaction suggests that Beijing intends to resist Washington's pressure, which makes the prospect of a deal in the short term vague. This raises the risk of a protracted trade war between the world's two largest economies.
Bloomberg
"The US threat to raise tariffs on China is a mistake upon a mistake,— the Chinese Ministry of Commerce said on Tuesday [April 8]. "If the United States insists on its own, China will fight to the end."
The Ministry of Commerce also called for dialogue to resolve disputes. The Chinese authorities have made it clear that they are determined to support the markets. The central bank loosened its control over the yuan to make its exports more attractive, and a group of government funds bought up possible assets. Officials have promised loans to help stabilize the market and are considering the possibility of upfront incentives.
Reuters: Chinese exporters face consequences of tariffs
Chinese manufacturers of goods are warning about declining profits, hastily planning to open new factories abroad or accelerate the implementation of offshore projects, while haggling with customers over prices. While some representatives of the corporate sector said that the duties would not have a significant impact on their operations, others in corporate reports revealed plans for emergency measures to reduce losses.
Reuters
For many, Trump's comprehensive tariffs threaten to disrupt supply chains, and it is becoming increasingly difficult to navigate the twists and turns of business negotiations and trade policy. His worldwide tariffs are hitting two main strategies of Chinese exporters to mitigate the effects of the trade war: shifting some production abroad and increasing sales to markets outside the United States.
Chinese suppliers of inexpensive goods to American conglomerates, which already operate with minimal margins, have been particularly hard hit. For example, Fuling, a company that sells eco-friendly tableware to fast food giants KFC and McDonald's, said that Trump's first duties had already caused damage, as customers in the United States asked the company to shoulder some of the increased costs of the duty.
The New York Times: Asian markets calm down
After three days of turmoil in global markets, which have not been observed since the first days of the COVID-19 pandemic, some calm returned on April 8. Before the opening of markets in China, the government took a number of measures to stabilize stocks. Stock prices in Hong Kong and mainland China jumped about 1.5% after falling 13.2%.
The New York Times
Stocks in Japan rose by 6%, recovering some of the losses of previous days. The rise in sentiment followed comments made on Monday by Treasury Secretary Scott Bessant, who said he would soon begin negotiations with the Japanese government on tariffs.
Dozens of Chinese companies, many of which are state-owned, have announced the buyback of some of their shares, which usually leads to higher prices. Beijing's intervention echoes the strategy of Chinese President Xi Jinping, who presents his government as a pillar of sustainable calm amid global economic instability caused by Trump's tariffs.
NBC: The White House is looking for ways to reassure allies
Trump sees an opportunity to "change the structure" of the United States with his ambitious plan to impose new global tariffs. But even as the president, administration officials, and key allies say he won't back down from his tariff plan, they're looking for ways to allay the concerns of cautious supporters. Measures include discussing the possibility of making deals with trading partners, tax benefits, and communication with nervous business groups.
NBC
"There's a perception among Republicans on [Capitol] Hill that we need to start cutting taxes right now," said a senior Republican aide in the Senate. "We have to offer something pleasant to the business community by providing them with certainty and helping them with policies that promote growth."
Two representatives of the presidential administration confirmed that its members are taking calls from business groups and organizing private meetings to allay concerns. According to a person close to the White House, White House Chief of Staff Susie Wiles called her colleague at least once over the weekend, asking him about the level of concern of the private sector about the market downturn.
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