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The ongoing trade war between the United States and China has escalated further, with President Donald Trump announcing a steep hike in tariffs on Chinese imports. Despite the mounting tensions, Trump described Chinese President Xi Jinping as a “smart man” and expressed optimism about reaching a trade deal.
Trump Praises Xi Jinping’s Leadership
During a press briefing at the White House, Trump lauded his Chinese counterpart, saying, “I think President Xi is a man who knows exactly what needs to be done. He’s a very smart man. He loves his country. I know that for a fact. I know him very well.”
The US President suggested that a resolution to the trade conflict was imminent. “And I think he’s going to want to make a deal. I think that’s going to happen. We’ll get a phone call at some point, and everything will be ready,” he added.
Trump also framed the potential agreement as beneficial beyond bilateral relations. “It is going to be a great thing for us, the world, and for humanity,” he said.
Tariffs on Chinese Imports Raised to 125%
In a move that could further strain economic ties, Trump announced on Wednesday that tariffs on Chinese imports would be increased to 125%. He cited China’s “lack of respect” for global markets as the primary reason for the decision.
“Based on the lack of respect that China has shown to the world’s markets, I am hereby raising the tariff charged to China by the United States of America to 125%, effective immediately,” Trump wrote on his social media platform, Truth Social.
The president reiterated his stance that China was unfairly exploiting international trade. “At some point, hopefully in the near future, China will realize that the days of ripping off the US and other countries are no longer sustainable or acceptable.”
A previous round of US tariffs had already taken effect earlier on Wednesday, increasing duties on Chinese imports to 104% before the latest hike.
China’s Response and WTO Complaint
Beijing, which has consistently vowed to retaliate against US tariffs, had earlier announced an increase in its own tariffs on American imports. Effective Thursday, China will raise duties on US goods from 34% to 84% in response to the previous 104% US tariff hike.
Additionally, China has filed a complaint with the World Trade Organization (WTO), accusing the Trump administration of using “bullying” tactics. The Chinese government has previously matched every round of US tariff hikes with countermeasures but has yet to announce its response to the latest increase.
Trump Temporarily Pauses Tariffs for Other Countries
While escalating the trade dispute with China, Trump has decided to pause tariffs on imports from several other nations for 90 days.
“I thought that people were jumping a little bit out of line, they were getting yippy, you know,” Trump said, using a sports term that describes a loss of nerves.
The US President suggested that the bond market’s volatility influenced his decision. “I saw last night where people were getting a little queasy,” he remarked.
Also Read: US-China Trade War: What Do The Two Economic Giants Import And Export?
