China says have 'ample policy tools' to deal with Trump's tariffs

Chinese Premier Li Qiang reiterated Beijing's optimism about its growth prospects in 2025, the world's second-largest economy, despite the recent tariffs from the US

China has ample policy tools to fully offset any negative external shocks, said Premier Li Qiang after US President Donald Trump announced additional 50 per cent tariffs on Beijing for "failing" to withdraw its retaliatory tariffs.

 

According to a Global Times report, Li Qiang reiterated optimism about China's growth prospects in 2025, the world's second-largest economy, despite the recent tariffs from the US.

 

Li Qiang spoke with Ursula Von der Leyen, the European Commission's president, on Tuesday (local time) and noted that the macroeconomic policies of the world's second-largest economy have taken into account the uncertainties. He maintained that Beijing is confident about maintaining the nation's economic growth.

 

China-European Union call

 

The call between Li Qiang and Ursula Von der Leyen came just hours before April 9, the day on which the reciprocal tariffs will come into effect. While China faces a massive 104 per cent levy from the Trump administration, Europe faces an additional 20 per cent tariffs.

 

Li Qiang urged the European Union to boost communication with Beijing amid trade tariff threats. He further stated that both sides should push forward for a new round of dialogue on trade and strategic cooperation.

 

China slams US

 

During his call with the EU president, Li Qiang criticised the United States for its punishing action. He reiterated China's stance, adding that the country will not only safeguard its interests but will also try to defend international trade rules.

 

Following the announcement of these additional 50 per cent tariffs, the Chinese government vows to retaliate against these levies from Washington.

 

Earlier, on Tuesday, China vowed retaliation if the Trump administration decided to go ahead with its additional tariffs. Condemning the move, the Chinese Ministry of Commerce called it a "mistake on top of a mistake."  The ministry further warned if Washington follows with its plan, China will "fight to the end."

 

Trump's China stance

 

Trump has claimed that China "wants to make a deal badly," and he is waiting for a call from Beijing. White House Press Secretary Karoline Leavitt at a press briefing said that the US president will be "gracious," if China reaches out.