China calls on US to ‘completely cancel’ reciprocal tariffs

BEIJING: China on Sunday called on the United States to “completely cancel” its reciprocal tariffs after Washington announced exemptions for consumer electronics and key chipmaking equipment.

“We urge the US to... take a big step to correct its mistakes, completely cancel the wrong practice of ´reciprocal tariffs´ and return to the right path of mutual respect”, a commerce ministry spokesperson said in a statement.

A notice late on Friday by the US Customs and Border Protection office said smartphones, laptops, memory chips and other products would be excluded from the global levies President Donald Trump rolled out this month.

Beijing´s commerce ministry said the exemptions were a “small step” by Washington and China was “evaluating the impact” of the decision. It came as retaliatory Chinese import tariffs of 125 percent on US goods took effect on Saturday, with Beijing standing defiant against its biggest trade partner.

The exemptions will benefit US tech companies like Nvidia and Dell, as well as Apple, which makes iPhones and other premium products in China.

Most Chinese goods still face a blanket 145 percent levy after the country was excluded from a 90-day tariff reprieve. China has sought to present itself as a stable alternative to an erratic Washington, courting countries spooked by the global economic storm.

Xi on Monday kicks off a five-day Southeast Asia tour for talks with the leaders of Vietnam, a manufacturing powerhouse, as well as Malaysia and Cambodia.

The fallout from Trump´s tariffs -- and subsequent whiplash policy reversals -- has sent particular shockwaves through the US economy, with investors dumping government bonds, the dollar tumbling and consumer confidence plunging.

Adding to the pressure on Trump, Wall Street billionaires -- including a number of his own supporters -- have openly criticized the whole tariff strategy as damaging and counterproductive.

The White House insists the aggressive policy is bearing fruit, saying dozens of countries have already opened trade negotiations to secure a deal before the 90-day pause ends. “We´re working around the clock, day and night, sharing paper, receiving offers and giving feedback to these countries,” Greer told CBS.