China Warns US Tariffs Could Deepen Global Poverty and Trigger Humanitarian Crisis
Commerce Minister Wang Wentao of China has issued a stern warning about the potential ramifications of the United States’ escalating tariffs on developing nations. In a call with World Trade Organisation Director-General Ngozi Okonjo-Iweala, Wang expressed his concerns about the impact of the ongoing trade dispute between the US and China on the global economy.
The trade tensions between the two economic powerhouses have reached new heights, with both countries imposing steep tariffs on each other’s goods. The effects of these tariffs have sent shockwaves through global financial markets, raising fears of a possible economic downturn.
Wang highlighted the negative impact that the US tariffs could have on developing countries, particularly the least developed nations, potentially leading to a humanitarian crisis. He criticized Washington’s tariff strategy for injecting instability into global markets and creating chaos both internationally and domestically.
In response to the US tariffs, China has imposed a 125 per cent tariff on American goods, nearly matching the recent 145 per cent levies imposed by the US on Chinese imports. However, China has indicated that it may no longer retaliate with additional tariffs, citing diminishing economic incentives for its importers to continue purchasing from American suppliers.
Credit: Qilai Shen/Bloomberg via Getty Images
China has also expressed its intention to challenge the latest US tariff round at the WTO, dismissing President Donald Trump’s tactics as a “joke” and a “numbers game.” The back-and-forth tariff actions have already had significant effects on global markets, with stock indices fluctuating, gold prices surging, and US government bonds facing pressure.
Despite the escalating tariffs, President Trump remains steadfast in his approach, claiming that his policy is “doing well.” He recently postponed planned tariffs on 15 other countries for three months following a market sell-off, expressing optimism about reaching a deal with China as negotiations continue.
Taiwan Initiates Tariff Talks with the US
In a related development, Taiwan has started discussions with the United States to address tariffs on key exports, particularly in the technology sector. President Lai Ching-te announced that Taiwan is on the “first negotiating list” of the US administration and is seeking to reduce its current 10 per cent tariff to zero.
Taiwan’s Office of Trade Negotiations confirmed a recent video conference with US officials, covering bilateral tariffs, non-tariff trade barriers, export controls, and other economic matters. Taiwan’s trade surplus with the US reached US$73.9 billion in 2024, with a significant portion coming from information and communications technology products.
While Taiwan braces for the possibility of a 32 per cent tariff hike, chips, a major export, have been excluded from the recent US tariff measures. The negotiations between Taiwan and the US signal a proactive approach to addressing trade issues and enhancing economic cooperation between the two nations.
