Chinese foreign ministry urges Sino-US dialogue as import tariffs kick in

BEIJING - The Chinese foreign ministry called for dialogue between China and the United States on Feb 5 as an additional 10 per cent in US tariffs on all Chinese products kicked in.

China, in response to the latest US tariffs, has

announced counter-tariffs of up to 15 per cent

on some US imports starting on Feb 10, buying Washington and Beijing time to try to hammer out a deal.

US President Donald Trump said on Feb 4

he was in no hurry to speak to Chinese President Xi Jinping

to try to defuse a new trade war between the world’s two largest economies.

“What is needed now is not unilateral, additional tariffs but dialogue and consultation based on equality and mutual respect,” said Mr Lin Jian, spokesman at the Chinese foreign ministry, at a regular news conference.

A new round of talks between Mr Trump and Mr Xi, building on their last telephone call two weeks ago, is seen as key to a potential easing or delay of US tariffs as conversations with Mexican and Canadian leaders did on Feb 3 in their bids to avert US tariffs on Mexican and Canadian goods.

Mr Trump has also cancelled the so-called “de minimis” exemption on US tariffs on inbound shipments, further tightening the inflow of Chinese goods.

The exemption had allowed goods worth US$800 (S$1,080) or less to be shipped to the United States without having to pay import duties, many of which come from mainland China and Hong Kong.

The International Monetary Fund, which in January warned that a spike in protectionist policies could hit investment and disrupt supply chains, said it was “in the interests of all to find constructive ways to resolve disagreements and enable trade”. REUTERS