BEIJING: China has called on the United States to “completely cancel” its reciprocal tariffs after Washington said exemptions for consumer electronics and key chipmaking equipment may be short-lived.
“We urge the US to … take a big step to correct its mistakes, completely cancel the wrong practice of ‘reciprocal tariffs’ and return to the right path of mutual respect,” a commerce ministry spokesperson said in a statement on Sunday.
The world’s two largest economies have been engaged in a tit-for-tat tariff war since US President Donald Trump announced this month sweeping global tariffs — since escalating the blanket duty on Chinese goods to 145 per cent.
Retaliatory Chinese import tariffs of 125pc on US goods took effect on Saturday, with Beijing standing defiant against its biggest trade partner.
US’ electronics tariff exemption to be short-lived; commerce secretary says semiconductor levy to be in place within months
Washington dialled down the pressure Friday when the US Customs and Border Protection office said smartphones, laptops, memory chips and other products would be excluded from the global levies.
China’s commerce ministry on Sunday called the exemptions a “small step” by Washington and said that China was “evaluating the impact” of the decision.
‘Short-lived’
The new exemptions will benefit US tech companies like Nvidia and Dell, as well as Apple, which makes iPhones and other premium products in China.
US Customs data suggests the exempted items account for more than 20pc of Chinese imports, according to senior RAND researcher Gerard DiPippo.
The relief could, however, be short-lived with some of the exempted consumer electronics targeted for upcoming sector-specific tariffs on goods deemed key to US national defense networks.
Trump has said he will give “very specific” details on Monday, and his commerce secretary, Howard Lutnick, said semiconductor tariffs would likely be in place “in a month or two.”
The White House says Trump remains optimistic about securing a deal with China, although administration officials have made it clear they expect Beijing to reach out first.
Trump’s trade representative Jamieson Greer told CBS ‘Face the Nation’ on Sunday that “we don’t have any plans” for a talk between the president and his Chinese counterpart Xi Jinping.
China looks elsewhere
China has sought to present itself as a stable alternative to an erratic Washington, courting countries spooked by the global economic storm.
Xi on Monday kicks off a five-day Southeast Asia tour for talks with the leaders of Vietnam, a manufacturing powerhouse, as well as Malaysia and Cambodia.
The fallout from Trump’s tariffs — and subsequent whiplash policy reversals — has sent particular shockwaves through the US economy, with investors dumping government bonds, the dollar tumbling and consumer confidence plunging.
Adding to the pressure on Trump, Wall Street billionaires — including a number of his own supporters — have openly criticised the tariff strategy as damaging and counterproductive.
The White House insists the aggressive policy is bearing fruit, saying dozens of countries have already opened trade negotiations to secure a deal before the 90-day pause ends.
“We’re working around the clock, day and night, sharing paper, receiving offers and giving feedback to these countries,” Greer told CBS.
Published in Dawn, April 14th, 2025
