Threats to introduce tariffs against China and other trading partners are considered by the Asian giant’s authorities as “psychological terror.”
Earlier, China’s Ministry of Commerce warned that US tariffs will affect global supply chains, including foreign companies in China.
“This psychological terror in trade carried out through customs tariffs has nothing to do with reality,” said ministry spokesman Gao Feng.
In this connection, the Chinese customs agency said that Beijing “will not bow down to the threats and blackmail, and will also be firm in its resolution on the protection of free trade and international mechanisms of global trade,” he said.
“China, together with the entire international community, will face unilateralism and backward protectionism, which is ineffective and out of fashion. It will exert every possible effort to protect the stability and constancy of the international trade area,” he said.
At the same time, China called on all countries to take decisive action in relation to US trade policy.
US President Donald Trump decided to introduce tariffs of $34 billion on products from China by July 6.
In response, Beijing had previously stated that it would take retaliatory action against agricultural products and automobiles imported from the United States.
China has decided that it will place tariffs on industries that mostly operate from states that overwhelmingly support Trump so that the full affects of these tariffs can be felt on those who support such a policy. Trump denounces free trade and claims the US has gotten bad deals because of this despite the US for much of the 20th Century championing and imposing free trade on states. It is expected that such an economic war will hasten America’s fall as the world leading economic, technological and military power of the world. This however remains to be seen, but it does have the potential to affect Trump reelection campaign if voters feel the full force of Chinese tariffs.