China’s Commerce Minister Wang Wentao has warned that the United States’ escalating tariffs could cause significant harm to developing nations, potentially causing a humanitarian crisis.
Wang made the comments during a call with World Trade Organisation (WTO) Director-General Ngozi Okonjo-Iweala, according to a statement released by the ministry on Saturday, April 12, 2025.
Tensions between Washington and Beijing have intensified recently, with both sides imposing increasingly steep tariffs on each other’s goods.
The growing trade rift between the world’s two largest economies has rattled global financial markets, fuelling fears of a broader economic downturn.
“These US ‘reciprocal tariffs’ will inflict serious harm on developing countries, particularly the least developed, and could even lead to a humanitarian crisis,” Wang said.
He hinted that Washington’s ongoing tariff strategy has injected instability into global markets and created “chaos both internationally and domestically within the US.”
Beijing’s latest move saw it impose a 125 per cent tariff on US goods from Saturday, nearly matching Washington’s recent 145 per cent levies on Chinese imports.
However, China signalled it may no longer respond to additional US tariffs, citing diminishing economic incentives for its importers to continue buying from American suppliers.
Credit: Qilai Shen/Bloomberg via Getty Images
China has also announced its intention to challenge the latest US tariff round at the WTO while dismissing President Donald Trump’s escalating tactics as little more than a “joke” and a “numbers game.”
The tit-for-tat actions have had immediate market repercussions. Global stock indices have fluctuated sharply, gold prices have surged as investors seek safe havens, and US government bonds have come under pressure.
Bilateral trade between the two economic powerhouses remains extensive. In 2024, Chinese exports to the US were valued at more than $500 billion, accounting for 16.4 per cent of China’s total exports, according to official customs figures.
Despite the rising tariffs, Trump remained defiant on Friday, stating his policy was “doing well.” Earlier in the week, he delayed planned tariffs on 15 other countries for three months following a dramatic sell-off across global stock markets.
The White House said the president was “optimistic” about striking a deal with China, noting that 15 countries had active offers on the table during the 90-day tariff pause.
Taiwan Begins Tariffs Talk with the US
In related developments, Taiwan has initiated its first round of tariff discussions with the United States as it seeks to protect key exports, particularly in technology.
Taiwan’s President Lai Ching-te announced on Friday that the island was on “the first negotiating list” of the US administration.
Taiwan currently faces a 10 per cent tariff and is hoping to reach an agreement to reduce this to zero, especially as it braces for a possible 32 per cent hike.
On Saturday, Taiwan’s Office of Trade Negotiations confirmed that a video conference had taken place the previous day with unnamed US officials. Discussions reportedly covered bilateral tariffs, non-tariff trade barriers, export controls, and other economic matters.
Taiwan’s trade surplus with the US stood at US$73.9 billion in 2024, ranking seventh globally.
Approximately 60 per cent of its US-bound exports are information and communications technology products, including semiconductors. However, chips have been excluded from Trump’s most recent tariff measures.
