China reaches out to others as Trump layers on tariffs

TAIPEI, Taiwan (AP) — China is reaching out to other nations as the U.S. layers on more tariffs in what appears to be an attempt to form a united front to compel Washington to retreat. Days into the effort, it's meeting only partial success with many countries unwilling to ally with the main target of President Donald Trump's trade war.

Facing the cratering of global markets, Trump on Wednesday backed off his tariffs on most nations for 90 days, saying countries were lining up to negotiate more favorable conditions.

China has refused to seek talks, saying it would “fight to the end” in a tariff war, prompting Trump to further jack up the tax rate on Chinese imports to 145%. It was initially announced on Wednesday as 125%, but that did not include a 20% tariff on China tied to its role in fentanyl production.

China has retaliated with tariffs on U.S. goods of 84%, which took effect Thursday.

Trump's move was seemingly an attempt to narrow what had been an unprecedented trade war between the U.S. and most of the world to a showdown between the U.S. and China.

“A just cause receives support from many,” Foreign Ministry spokesperson Lin Jian said at a daily briefing on Thursday. “The U.S. cannot win the support of the people and will end in failure.”

China has thus far focused on Europe, with a phone call between Premier Li Qiang and European Commission President Ursula von der Leyen “sending a positive message to the outside world.”

“China is willing to work with the EU to jointly implement the important consensus reached by the leaders of China and the EU, strengthen communication and exchanges, and deepen China-EU trade, investment and industrial cooperation,” the official Xinhua News Agency reported.

That was followed by a video conference between Chinese Commerce Minister Wang Wentao and EU Commissioner for Trade and Economic Security Maroš Šefčović on Tuesday to discuss the U.S. “reciprocal tariffs.”

Wang said the tariffs “seriously infringe upon the legitimate interests of all countries, seriously violate WTO rules, seriously damage the rules-based multilateral trading system, and seriously impact the stability of the global economic order,” Xinhua said.

“It is a typical act of unilateralism, protectionism and economic bullying,” Wang was quoted as saying.

“China is willing to resolve differences through consultation and negotiation, but if the U.S. insists on its own way, China will fight to the end,” Wang said.

Wang has also spoken with the 10-member Association of Southeast Asian Nations, while Li, the premier, has met with business leaders. China has “already made a full evaluation and is prepared to deal with all kinds of uncertainties, and will introduce incremental policies according to the needs of the situation,” Xinhua quoted Li as saying.

In Hong Kong, the spokesperson for the local office of China's Foreign Ministry reiterated Beijing's unwillingness to negotiate with the U.S. under current conditions.

“We must solemnly tell the U.S.: a tariff-wielding barbarian who attempts to force countries to call and beg for mercy can never expect that call from China,” Huang Jingrui wrote in an op-ed appearing in the South China Morning Post.

If the U.S. is truly sincere about starting a dialogue with China, it should “immediately rectify its wrong practices and adopt the right attitude of equality, respect and mutual benefit,” Huang wrote.

Despite their unhappiness with Washington, not all countries are interested in linking up with China, especially those with a history of disputes with Beijing.

“We speak for ourselves, and Australia’s position is that free and fair trade is a good thing," Australian Prime Minister Anthony Albanese told reporters. “We engage with all countries, but we stand up for Australia’s national interest and we stand on our own two feet.”

China imposed a series of official and unofficial trade barriers against Australia in 2020 after the government angered Beijing by calling for an independent inquiry into the COVID-19 pandemic.

India has also reportedly turned down a Chinese call for cooperation, and Russia, typically seen as China's closest geopolitical partner, has been left out of the Trump tariffs altogether. Taiwanese Foreign Minister Lin Chia-lung said on Wednesday that his government is preparing for talks on tariffs with the U.S.

The U.S. imposed a 32% tariff on imports from Taiwan, a close trading and security partner. Taiwan produces most of the high-performing computer chips craved by the U.S. and others and has long enjoyed a trade surplus with Washington.

Yet, Southeast Asian nations such as Vietnam and Cambodia find themselves in a particular bind. They benefited when factories moved to their countries from China due to rising costs. They are being hit by punishing tariffs but have few buyers outside the U.S. and are already operating on razor-thin margins.

Trump had previously denied contemplating a pause, but the drama over his tariffs will continue as the administration prepares to engage in country-by-country negotiations. Meanwhile, tariffs will be 10% for the countries where the larger ones were paused.

It's not clear what further steps China will take, but the Foreign Ministry's Lin said China “will not sit idly by and let the legitimate rights and interests of the Chinese people be deprived of, nor will we allow the international trade rules and multilateral trading system to be undermined.” Non-tariff options include bans on American movies, American law firms and other trade in services.

World markets soared on Thursday, with Japan’s benchmark jumping more than 9%, as investors welcomed Trump’s decision Germany’s DAX initially gained more than 8%. It was up 7.5% at 21,141.53 a bit later, while the CAC 40 in Paris gained 7.2% to 7,360.23. Britain’s FTSE 100 surged 5.4% to 8,090.02.

However, U.S. futures edged lower and oil prices also declined. Chinese shares saw more moderate gains, given yet another jump in the tariffs each side is imposing on each others’ exports.

The future for the S&P 500 was down 0.4% while that for the Dow Jones Industrial Average edged 0.2% lower.

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Associated Press reporters Rod McGuirk in Sydney and Kanis Leung in Hong Kong contributed to this report.