US 10% Tariff on China: Beijing Vows Tougher Response
Why in the news
Washington declared a fresh 10% duty on Chinese goods from March 4, and Beijing said it would hit back firmly. Chinese equities dropped.
Key facts
- 10% tariff effective March 4, justified by drug-flow concerns.
- China’s Ministry of Commerce vowed a tougher stance, raising trade-war risk; no prior consultation occurred.
- Timing is just before China’s National People’s Congress, where the 2025 economic plan is unveiled.
- Channels stay open: He Lifeng (Vice Premier) met Scott Bessent (US Treasury), and China’s Defence Ministry confirmed talks with the US military.
| Market | Move |
|---|---|
| Hong Kong-listed Chinese shares | Down up to 3.9%, worst day of the month |
| Onshore CSI 300 | Down 1.9%, first weekly loss in a month |
Significance
- A tougher Chinese reply could disrupt global supply chains.
Exam angle
- Tariff: 10%, from March 4.
- Retaliation body: Ministry of Commerce.