State-run Chinese newspaper says increased tariffs could leave trade ‘paralyzed’ between China and the US.
According to a report covered by Iran’s Shargh Newspaper, China’s state-run newspaper says the government would respond with “countermeasures” if US President-elect Donald Trump starts a trade war against the country, warning that the sales of iPhones and US cars would suffer a “setback.”
In an editorial, the Global Times said it would be “naive” for Trump to follow through on his campaign promises to implement a 45 percent tariff on Chinese exports to the US and to declare the country a currency manipulator.
Trump repeatedly targeted China during his presidential campaign, vowing to take a tougher stance on trade in the hopes of reviving manufacturing in the US. In its editorial, the Global Times dismissed the notion that Trump alone could implement a 45 percent tariff on Chinese exports, though it warned that any protectionist measure could leave trade “paralyzed.”
“China will take a tit-for-tat approach then,” the editorial reads. “A batch of Boeing orders will be replaced by Airbus. US auto and iPhone sales in China will suffer a setback, and US soybean and maize imports will be halted. China can also limit the number of Chinese students studying in the US.”