Germany concerned over ‘very massive escalation’ of US-China tariff war

BERLIN

Germany on Friday said that it was concerned over what it called a “very massive escalation” of the tariff war between the US and China.

Berlin is “currently seeing a very massive escalation in trade issues between the United States of America and the People’s Republic of China, and this escalation is also having an impact on a globalized world economy,” government spokesman Steffen Hebestreit said at a news conference in Berlin.

Calling for “fewer, not more, trade barriers,” Hebestreit said: “A negotiated solution must be found that all sides can live with.”

Meanwhile, Hebestreit welcomed the EU’s decision to suspend its retaliatory 25% tariffs on US goods for 90 days after US President Donald Trump's dramatic climbdown in his trade war, saying his country wants “a fundamental agreement.”

China had accused the US on Thursday of exerting “maximum pressure” and using tariffs as a "weapon,” vowing not to give into Washington's trade moves amid deteriorating ties.

Beijing will not fear the US’ “selfish” moves, Foreign Ministry spokesman Lin Jian told reporters in the Chinese capital, adding that Beijing's response “will continue until the end.”

He said that Trump’s “reciprocal” tariffs of 125% on China are “against the whole world” and “undermined” the multilateral trading system.

“The US threat and blackmail against the rest of the world with tariffs is a real attempt to hold the world by the throat and coerce them into making a compromise or concessions," said Lin.

"Threatening, pressuring, extorting is not the right way to deal with China,” he said. “If the US surely wants talks, it should show an attitude of equality and respect.”

Beijing's reaction came after Trump, angered by China's additional tariffs of 84% on US imports, raised tariffs on Chinese imports to 125%.

Trump's wide-ranging tariffs on allies and rivals have roiled global markets but the US president gave a reprieve of 90 days to nations that did not retaliate against Washington, with instead a base 10% tariffs for all.

"Tariff wars and trade wars have no winners. China does not want to fight them, but will not fear when they come our way,” Lin said.