Trade Tensions Escalate as China Hits Back at U.S. Tariffs

China criticized U.S. tariffs introduced by President Trump, urging equal-footed consultation amid global market disruptions. The conflict escalated as China retaliated with its own tariffs and export curbs, intensifying this trade war. Hong Kong opted for a non-retaliatory stance, emphasizing its commitment to a free and open market.

In response to U.S. President Donald Trump's recent tariff hikes on Chinese imports, China has sharpened its rhetoric, stating that 'the market has spoken' against these controversial economic measures. The Xinhua news agency further urged the U.S. to cease using tariffs as a means of economic suppression and to pursue fair negotiations.

The trade confrontation intensified when Trump authorized additional tariffs, escalating duties on Chinese goods to a staggering 54% this year. This prompted immediate retaliations from China, which slapped 34% tariffs on U.S. goods and imposed export restrictions, particularly affecting rare earth elements crucial to technology production. Global markets have reacted negatively, with significant downturns reflecting investor uncertainty.

Hong Kong's financial leadership, represented by Paul Chan, distanced itself from the fray, highlighting the city's dedication to maintaining its status as a 'free and open' market. Chan emphasized adherence to a rules-based multilateral trading system, aligning with Hong Kong's strategic interests in free-flowing capital and trade.

(With inputs from agencies.)