BANGKOK — As the U.S. and China argued over increased tariffs and retaliatory actions on Tuesday, other nations considered strategies to navigate the economic tensions between the two major global economies.
China declared its intention to “fight to the end” and implement countermeasures against the U.S. to protect its interests. This statement followed President Donald Trump’s threat to impose an additional 50% tariff on Chinese goods in response to Beijing’s reaction to the 34% tariffs he initiated on April 2nd.
The Commerce Ministry stated via state broadcaster CCTV that the U.S. threat to escalate tariffs on China was a mistake and exposed the U.S.’s “blackmailing nature,” which China would never accept.
When questioned about potential talks between Washington and Beijing, Chinese Foreign Ministry spokesperson Lin Jian suggested that the U.S.’s actions did not indicate a sincere desire for dialogue and that the U.S. should adopt an attitude of equality, mutual respect, and mutual benefit if it genuinely wanted to engage in discussions.
Concurrently, Chinese state-run companies were instructed to provide support to the country’s financial markets following significant sell-offs on Monday.
While markets stabilized somewhat after intense selling over two trading sessions that resulted in trillions of dollars in losses, Asian leaders began implementing damage control measures.
Help for Japan’s automakers and steel mills
Japanese Prime Minister Shigeru Ishiba spoke with President Trump late Monday and then convened a task force on Tuesday to lessen the impact of the 24% U.S. tariffs imposed on Japan.
Economic Revitalization Minister Ryosei Akazawa was designated as the lead trade negotiator, and senior officials were sent to Washington to follow up on Ishiba’s discussion with Trump.
Ishiba instructed his ministers to exert maximum effort to persuade Trump to reconsider and to mitigate the effects of the U.S.’s “reciprocal” tariffs, which he warned would negatively impact all industries, according to Chief Cabinet Secretary Yoshimasa Hayashi.
India wants a deal
India’s Foreign Minister S. Jaishankar spoke with U.S. Secretary of State Marco Rubio late Monday, advocating for the swift conclusion of negotiations for a bilateral trade agreement.
India, facing a 26% tariff on its exports to the U.S., seeks concessions as part of the trade agreement, with the first part expected by fall. Washington desires greater market access for U.S. dairy and other agricultural products, but New Delhi has resisted due to the large proportion of its workforce employed in agriculture.
India’s Trade Minister Piyush Goyal planned to meet with exporters on Wednesday to assess the potential impact and protect the economy from the tariffs.
A State Department statement indicated that Rubio and Jaishankar discussed ways to enhance collaboration, address the tariffs, and “how to make progress toward a fair and balanced trade relationship.”
Malaysia promises ‘soft diplomacy’ response
Malaysian Prime Minister Anwar Ibrahim announced that his government and other Southeast Asian nations would send officials to Washington to discuss the tariffs and were working to build a consensus on a unified response among the 10 ASEAN members as they met for an investment conference in Kuala Lumpur.
“We do not believe in megaphone diplomacy,” Anwar stated. “As part of our soft diplomacy of quiet engagement, we will be dispatching together with our colleagues in ASEAN our officials in Washington to begin the process of dialogue.”
However, he also criticized the U.S., pointing out that Malaysia’s trade with the U.S. had historically been mutually beneficial, with its exports supporting Malaysia’s growth and providing high-quality jobs for Americans. He added that the recently imposed 24% tariff on Malaysian imports was “harming all” and could negatively affect both economies.
Anwar stated that Malaysia would maintain a policy of diversifying its trade in response to uncertainties surrounding globalization and evolving supply chains.
Hong Kong vows more, not less, open trade
In Hong Kong, Chief Executive John Lee, in agreement with Beijing, condemned Trump’s tariffs as “bullying” and “ruthless behavior” that had damaged trade and increased global uncertainty.
Lee stated that Hong Kong, operating with a free-trade policy and as a free port with minimal trade barriers, would strengthen its ties with mainland China, enter into more free trade agreements, and work to attract more foreign investment to mitigate the effects of the higher U.S. duties.
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Niniek Karmini and Edna Tarigan in Jakarta, Rajesh Roy in New Delhi, Mari Yamaguchi in Tokyo and Kanis Leung in Hong Kong contributed.
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