China’s Ministry of Foreign Affairs has dismissed recent tariff claims made by U.S. President Donald Trump, calling them a mere "numbers game." The White House recently revealed that tariffs on Chinese exports could reach as high as 245 percent, a significant increase that has raised concerns about the future of U.S.-China trade relations.
The fact sheet from the White House highlighted several tariff rates, including a new 125 percent tariff and a previous 20 percent tariff. These tariffs were introduced in response to China’s alleged failure to control fentanyl exports to the U.S. Additionally, further tariffs between 7.5 percent and 100 percent could follow national security reviews under the Trade Act of 1974.
In a statement echoing remarks made by the Ministry of Finance last week, China’s Foreign Ministry criticized Trump’s escalating tariffs as a "joke," stating they no longer hold any economic weight. Currently, China has imposed its own tariffs on U.S. goods at a rate of 125 percent, alongside other measures, such as restricting the release of Hollywood films.
Economists warn that if these tariffs remain in place, they could severely disrupt trade between the two nations, leading to skyrocketing costs. The World Trade Organization (WTO) has predicted a 0.2 percent decline in global trade volume by 2025 under current conditions. This decline could be even sharper, with a potential drop of 1.5 percent in global goods trade, which would particularly impact export-driven developing countries.
Additionally, the United Nations Conference on Trade and Development (UNCTAD) has lowered its growth forecast for the global economy from 2.5 percent to 2.3 percent for 2025. This reduction is concerning, as growth below 2.5 percent often indicates the onset of a global recession.
As tensions rise over trade, the implications of these tariffs may extend beyond just the U.S. and China, affecting economies worldwide.