Spiralling downwards: Govt must make careful moves on trade talks

Beijing can perhaps take the risk of a strong line because it is now less dependent on direct exports to the US than it has been in the past

Global reactions to American President Donald Trump’s announcement of a new tariff structure for the United States (US) on “Liberation Day”, April 2, are now beginning to be seen. They vary widely. In what was a major negative signal for markets, China took a strong stance, tariffing US imports at 34 per cent to match the additional levy that Mr Trump had imposed on its exports. This was straightforward tit for tat — unlike the US administration’s ersatz country-specific formula, which, in spite of claims, had nothing “reciprocal” to it. Beijing can perhaps take the risk of a strong line