China Says US Tariffs Are Unfair and Based on False Claims, Reports BBC
China has told the World Trade Organization (WTO) that the US is wrong to blame it for the fentanyl drug problem. The BBC reports that China says the US is using this as an excuse to put taxes, called tariffs, on Chinese products. These tariffs make Chinese goods more expensive in the US.
The complaint came after US President Donald Trump added a 10% tax on many Chinese goods. Trump said this was to stop illegal drugs like fentanyl from coming into the US. But China says these taxes are unfair, break global trade rules, and are just a way to protect US businesses.
The BBC explains that Trump wants to use tariffs to make companies produce more goods in the US instead of buying them from other countries. He is worried about the US trade deficit, which is when the US buys more from other countries than it sells to them.
However, these tariffs are causing problems for businesses everywhere. Some companies are delaying investments or raising prices for customers because of the uncertainty. In December, US imports hit a record high as businesses rushed to buy foreign-made items like toys and phones before the tariffs started.
The BBC also notes that China is fighting back. It has put tariffs on US goods and is investigating big US companies like Google and Apple. China’s quick complaint to the WTO shows it is ready for a trade battle.
Experts say the tariffs will hurt some companies, especially those that sell very cheap products. But for China’s overall economy, the impact might not be too severe. Mark Williams, an economist, told the BBC that China can handle the situation.
The WTO gives the US and China 60 days to talk and solve the problem. If they can’t, China can ask the WTO to make a decision. But the BBC points out that the WTO’s system is not working well because the US is blocking the appointment of new judges.
In December, the US trade deficit with China was $25.3 billion, meaning the US bought much more from China than it sold to them. The US also had a trade gap with the European Union, another target of Trump’s tariffs. However, the US had a small surplus with the UK, selling more goods than it bought.
Overall, the US trade deficit grew by 17% last year, reaching $918.4 billion. This happened because imports grew faster than exports. In December alone, the trade deficit was $98.4 billion, the highest since March 2022.
The BBC highlights that while Trump’s tariffs aim to help the US, they are causing tension and uncertainty in global trade.
China is standing firm, and the situation could have long-term effects on businesses and economies worldwide.
Credit : BBC
https://www.bbc.com/news/articles/c805m1r4m5no