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Updated 15:23 IST, February 3rd 2025

Trump Hits China, Canada, Mexico with Tariffs; Beijing Takes Cautious Approach Amid Trade War

China responded more cautiously, expressing strong dissatisfaction without detailing specific countermeasures.

Reported by: Republic Desk
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Donald Trump, US President Donald Trump
US President Donald Trump | Image: AP

After Donald Trump imposed new tariffs on Chinese goods, as well as 25 percent duties on imports from Canada and Mexico, leaders from both countries retaliated swiftly, Bloomberg reported. Canada announced a 25% counter-tariff on $107 billion of U.S. goods, while Mexico pledged similar measures, as reported by the same newswire agency.

China treads cautiously

China, however, responded more cautiously, expressing strong dissatisfaction without detailing specific countermeasures. The Chinese government also indicated it would file a complaint with the World Trade Organization.

Trump's tariffs could impact Chinese exports, with experts estimating a 40% reduction in exports to the U.S., potentially slowing China’s GDP growth by 0.5 percent Despite this, analysts suggest China will respond carefully, using options like currency devaluation or limiting exports of key minerals. China's economic challenges have been exacerbated by the tariffs, but it may increase fiscal spending to boost demand.

While China has historically delayed countermeasures until tariffs are officially implemented, ongoing negotiations between Trump and Xi Jinping could lead to further adjustments. Trump’s additional measures, including high tariffs and a focus on combating illegal drugs, may intensify tensions in the coming months.

Published 14:42 IST, February 3rd 2025