A trade war between the US and China will spell “disaster” for the entire world economy, Chinese Commerce Minister Zhong Shan warned, after US President Donald Trump signed orders greenlighting stiff tariffs on imported aluminum and steel.
“There are no winners in a trade war,” the Minister said on Sunday, warning that a trade war between the two economic superpowers will leave the global economy in ruins, RT reported.
“It will only bring disaster to China and the United States and the world,” Zhong stated, in the wake of Trump’s decision to impose a 25 percent import duty on steel and 10 percent on aluminum.
Trump signed the new tariffs order last Thursday. While allowing some neighbors and allied countries to enjoy an exemption from the new levy, Trump called the tariffs a matter of national security.
The restrictions, due to take effect in 15 days, have already escalated tensions between Washington and its partners across the globe, from Tokyo to Beijing to Brussels.
China’s Foreign Minister Wang Yi vowed a “justified and necessary response” to Washington’s initiative earlier on Thursday.
While China accounts for only a small fraction of US steel imports, trade tensions between Beijing and Washington have been on the rise since Trump took office.
Prior to signing the order, Trump urged Beijing to come up with a concrete proposal to reduce their trade deficit with the United States.
“China has been asked to develop a plan for the year of a One Billion Dollar reduction in their massive Trade Deficit with the United States,” Trump wrote on Tweeter, adding that “Our relationship with China has been a very good one, and we look forward to seeing what ideas they come back with. We must act soon!”