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Trade war erupts; China slaps heavy duty on US products

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Trade war erupts; China slaps heavy duty on US products

In a tit-for-tat response to US imposing duties on importing aluminium and steel, China’s increased tariffs by up to 25 percent on 128 U.S. products have come into effect on Monday. The frozen pork, wine and certain fruits and nuts are included in the increased tariff regime.

The rise in tariffs was announced late on Sunday by China’s finance ministry and matched a list of potential tariffs on up to $3 billion in U.S. goods.

According to Xinhua, the Customs Tariff Commission of the State Council has decided to impose a tariff of 15 percent on 120 items of products imported from the United States including fruits and related products, and a tariff of 25 percent on eight items of imports including pork and related products from the country, according to a statement posted on the finance ministry’s website.

The statement said it was a countermeasure in response to a previous US move to slap tariffs on steel and aluminium imports.

Soon after the implementation of new US measures on March 23, Global Times warned that if the U.S. had thought China would not retaliate or would only take symbolic counter-measures, it can now “say goodbye to that delusion.”

“Even though China and the U.S. have not publicly said they are in a trade war, the sparks of such a war have already started to fly,” the editorial said.

China’s Ministry of Commerce said on Sunday that it was suspending its obligations to WTO to reduce tariffs on 120 U.S. goods, including fruit and ethanol. The tariffs on those products will be raised by an extra 15 percent. Pork and scrap aluminium will now be subjected to additional 25 percent tariff.

The Chinese commerce ministry said the US had “seriously violated” the principles of non-discrimination enshrined in World Trade Organization rules, and had also damaged China’s interests.

“China’s suspension of some of its obligations to the United States is its legitimate right as a member of the World Trade Organization,” it said. The Chinese Ministry has argued that differences between the two economies should be resolved through dialogue and negotiation.

The ministry said, “China’s suspension of its tariff concessions is a legitimate action adopted under WTO rules to safeguard China’s interests.”

China’s retaliatory tariffs came at a t time when trade tensions between Beijing and Washington has been mounting. It has already rocked global financial markets in the past week as investors feared a full-blown trade war between the two countries may damage the world growth.

According to Reuters, U.S. President Donald Trump is separately preparing to impose tariffs of more than $50 billion on Chinese goods intended to punish Beijing over U.S. accusations that China systematically misappropriated American intellectual property. Beijing denies the allegations.

China warned the US on Thursday not to open a Pandora’s Box and spark a flurry of protectionist practices across the globe.

China’s Communist party’s newspaper Global Times has recently said in an editorial that “There are some people in the West who think that China looks tough for the sake of a domestic audience, and would easily make concessions in the end. But they are wrong.”

According to 2017 trade statistics between the two countries, US imports worth goods of $505 billion and exports goods valuing just $130 billion having trade gap of $375 billion.

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Nearly 2,000 killed as Iran acknowledges high death toll in nationwide protests

Iran has for the first time acknowledged that nearly 2,000 people were killed during nationwide protests sparked by economic distress, as authorities continue a strict security crackdown.

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Iran has acknowledged for the first time that close to 2,000 people, including members of the security forces, have been killed during two weeks of widespread protests across the country, according to an Iranian official.

The official said the deaths occurred amid violent clashes during nationwide unrest that erupted over worsening economic conditions. The figure marks the highest acknowledged toll so far from the current wave of demonstrations, which has posed one of the most serious internal challenges to Iran’s leadership in recent years.

Official blames “terrorists” for violence

According to the official, those described as “terrorists” were responsible for the deaths of both protesters and security personnel. However, no detailed breakdown was provided regarding how many civilians or security forces were killed.

Iran’s clerical leadership has accused the United States and Israel of instigating unrest in the country, alleging that external actors exploited public anger and escalated the demonstrations into violent confrontations.

Dual approach to protests

Authorities have attempted to balance their response by distinguishing between what they describe as legitimate protests over economic hardship and acts of violence. While acknowledging public frustration over living conditions, the government has simultaneously enforced a strict security crackdown to contain the unrest.

The protests are reported to be the most significant challenge to the Iranian establishment in at least three years and come at a time of heightened international pressure following military strikes by the US and Israel last year.

Rights groups cite arrests and casualties

Human rights organisations had earlier reported that hundreds of people were killed during the protests and said thousands were detained as security forces moved to suppress demonstrations across several cities.

The flow of information from inside Iran has been severely restricted due to communications curbs, including recent internet blackouts, making independent verification difficult.

Clashes captured on video

Despite restrictions, multiple videos circulating online have shown intense nighttime clashes between demonstrators and security forces. Some of these visuals, verified by media, depict gunfire, burning vehicles, and damage to buildings, highlighting the scale of violence during the unrest.

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Khamenei warns US against deceitful actions as Trump announces 25% tariff threat

Ayatollah Ali Khamenei has warned the United States against “deceitful actions” after Donald Trump announced a 25% tariff threat, as protests continue to challenge Iran’s leadership.

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Iran’s Supreme Leader Ayatollah Ali Khamenei has warned the United States to stop what he described as “deceitful actions” and reliance on “traitorous hirelings,” responding to escalating pressure from US President Donald Trump, including a proposed 25 per cent tariff on countries trading with Iran.

In a post on X, Khamenei said the Iranian nation had demonstrated its resolve in the face of external pressure and issued a warning to American politicians. He asserted that Iran remained strong, aware of its adversaries, and firmly present on the political stage.

Protests pose major challenge to Iran’s leadership

Khamenei’s remarks come amid more than two weeks of nationwide demonstrations that began over economic grievances and have since grown into one of the most serious challenges to Iran’s theocratic system since the 1979 Islamic revolution.

Rights groups have claimed that at least 646 people have been killed during the protests, which have spread across several cities. The unrest has intensified international scrutiny of Tehran’s response and further strained relations with Washington.

Trump signals economic and military options

President Trump has repeatedly warned Iran over its handling of the protests, stating that the United States was prepared to act if demonstrators were killed. He has said possible US responses range from low-risk to high-risk options, depending on the ultimate objective.

While Trump has previously criticised “regime change” as a foreign policy goal, citing past US involvement in Iraq, he has continued to apply economic pressure on Tehran. On Monday, he announced a 25 per cent tariff on countries that trade with Iran, marking a significant escalation in sanctions-linked measures.

Trump has also spoken about efforts to restore internet access in Iran after authorities imposed shutdowns during the protests.

Limited communication revealed

Despite the sharp public rhetoric, both governments have acknowledged that some level of communication has taken place. These contacts were reportedly coordinated through Trump’s envoy Steve Witkoff.

Iran and the United States have remained adversaries since the 1979 revolution that overthrew the pro-Western shah. Any major shift in Iran’s political system would have far-reaching consequences for the Middle East, making the current standoff closely watched across the region.

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Trump may visit India next year as US envoy calls New Delhi Washington’s most essential partner

The US has described India as its most essential global partner, with ambassador-designate Sergio Gor indicating a possible visit by President Donald Trump next year.

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The United States has said that no country is more essential to its global interests than India, with US ambassador-designate Sergio Gor indicating that President Donald Trump may visit India within the next year or two.

Speaking at the US Embassy in New Delhi, Gor highlighted the close personal rapport between Trump and Prime Minister Narendra Modi, describing their relationship as genuine and resilient even in times of disagreement.

India-US ties anchored at the highest level

Gor said the partnership between India and the United States is rooted not only in shared strategic interests but also in strong leadership-level engagement.

He noted that while differences may arise between the two countries, they are resolved through dialogue, reflecting the maturity of the relationship. According to him, India’s scale and global standing make bilateral cooperation both complex and crucial.

Trade talks to resume from January 12

The ambassador-designate confirmed that the next round of India-US trade negotiations will begin on Tuesday, January 12. Acknowledging the challenges involved, Gor said both sides remain committed to reaching an agreement.

Trade, he said, is a vital pillar of bilateral ties, alongside cooperation in areas such as security, counter-terrorism, energy, technology, education and health.

Trump-Modi friendship described as ‘real’

Gor reiterated that he has personally witnessed the bond between Trump and Modi during international engagements, stressing that the friendship goes beyond diplomacy.

Recalling conversations with the US President, he said Trump often speaks positively about his previous India visit and his relationship with the Indian Prime Minister.

Possible Trump visit to India

Indicating a potential presidential visit, Gor said Trump could travel to India in the next one or two years. He described his own appointment as an effort to elevate the bilateral partnership to a new level, calling the India-US relationship a meeting point of the world’s oldest and largest democracies.

India to join Pax Silica alliance

Gor also announced that India will be invited to join the US-led Pax Silica alliance as a full member next month.

The initiative aims to develop a secure, resilient and innovation-driven global silicon supply chain, reinforcing India’s role in strategic technology partnerships.

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