TAIPEI, TAIWAN — Chinese Foreign Minister Wang Yi on Friday criticized the United States for imposing tariffs on Chinese imports and vowed to “resolutely retaliate” if Washington continues to increase pressure on Beijing.

Speaking to local and foreign media outlets during the annual meeting of China’s parliament on Friday, Wang questioned the effectiveness of the U.S. government’s tariffs against China and called on Washington to avoid conflicts and confrontation.

“The U.S. should think about what they have gotten out of all the trade wars and tariff wars that they have initiated all these years,” Wang said, adding that the economic and trade relationship between the two countries should be “mutual and reciprocal.”

“No country can fantasize about developing good relations with China while suppressing and containing it,” he said, calling such behavior a “two-faced approach” that will be detrimental to the stability of bilateral relations and attempts to build trust.

Wang’s remarks come three days after the U.S. imposed an additional 10% tariff on all Chinese imports, bringing the total amount of tariff on Chinese products to 20% and prompting Beijing to slap tariffs of between 10% to 15% on a wide range of American agricultural products.

“[U.S. Treasury] Secretary [Scott] Bessent expressed serious concerns about the PRC’s counternarcotics efforts, economic imbalances, and unfair policies, and stressed the Administration’s commitment to pursue trade and economic policies that protect the American economy, the American worker, and our national security,” the Treasury said in a statement following a Feb. 28 telephone conversation with Chinese Vice Premier He Lifeng, using the acronym for China’s official name, the People’s Republic of China.

Despite his criticism of the U.S. tariffs against China, Wang said Beijing remains committed to maintain a “stable, healthy and sustainable development of China-U.S. relations” based on “mutual respect, peaceful coexistence and win-win cooperation.”

“I hope that the United States will listen to the voices of the two peoples, recognize the general trend of historical development, look at China’s development objectively and rationally, actively and pragmatically carry out exchanges with China,” he told a roomful of journalists.

In addition to bilateral relations with the U.S. Wang also criticized Washington’s Indo-Pacific strategy, saying the plan, which includes deploying mid-range capability missiles to countries like the Philippines, has only “stirred up trouble and create differences” in the region.

“Instead of being the battleground of big power competition, Asia should be the place to showcase international cooperation,” he said, adding that China advocates for open regionalism and sharing development opportunities in Asia based on mutual respect and benefit.

Analysts say Wang’s remarks suggest China is seeking to handle relations with the U.S. in a “firm yet not overly excited way.”

“China is telling the Trump administration that what they are doing is wrong, but they don’t seem to be putting proposals on the table, which may be their attempt to avoid escalation in bilateral relations,” said Ian Chong, a political scientist at the National University of Singapore.

China as the pro ‘status-quo’ power

In addition to weighing in on bilateral relations with Washington, Wang also reiterated China’s support for multilateralism and opposition to “unilateralism” and “hegemony,” a vague criticism of the U.S. decision to freeze foreign aid and pull out of some international organizations.

“We will safeguard the multilateral free trade system, create an open, inclusive and nondiscriminatory environment for international cooperation, and promote inclusive economic globalization,” he said during the news conference.

When asked about the current role of the United Nations, Wang said China opposes the monopolization of international affairs by a few countries and hopes the voices of countries in the Global South, which include developing nations in Africa, Latin America and Asia, could be “heard more often.”

“As a permanent member of the U.N. Security Council, China is aware of its international responsibility and will firmly uphold the centrality of the United Nations, serve as the mainstay of the multilateral system and be the voice of justice for the Global South,” he said.

Some experts say Wang’s comments are part of Beijing’s efforts to present itself as a “steady” and “pro-status quo” power as the United States is dramatically changing its foreign policy approach.

“Beijing wants to reassure other countries that China is the safer pair of hands and at a time when the Trump administration is pursuing a more zero sum-oriented trade war against friends and foes alike, Wang is trying to signal that China is open for business,” Wen-ti Sung, a Taipei-based political scientist for the Australian National University, told VOA by phone.

Despite Wang’s statements, Chong in Singapore said China has yet to present concrete plans to fulfill their commitment to uphold the multilateral world system and support for developing countries.

“China has been saying they want a multipolar world order for decades, but none of Beijing’s concrete proposals are on the table right now,” he told VOA by phone.

Beijing remains cautious of the U.S.-Russia interaction

As the U.S. tries to increase engagement with Russia and facilitate a potential peace deal over the war in Ukraine, Wang said a “mature, resilient and stable” relationship between Beijing and Moscow won’t be interfered by any third party.

“Regardless of changes in the international environment, the historical logic of Sino-Russian friendship remains unchanged, and its endogenous dynamics will not diminish,” he said, adding that Beijing and Moscow will continue to “uphold the international system with the U.N. at its core and promote the development of the international order in a more just and rational direction.”

Chong said Wang’s remarks show Beijing is “cautious” about the recent interaction between Russia and the U.S.

“China understands if there is some sort of arrangement between the Americans and Russians, the U.S. gets to focus a lot more on competing with China in the Pacific, and Beijing could face a lot more pressure,” he told VOA.

Apart from elaborating on China’s foreign policy, Wang also reiterated Beijing’s claim over Taiwan.

“Advocating Taiwan independence is tantamount to secession, supporting Taiwan independence is tantamount to interference in China’s internal affairs, and condoning Taiwan independence is tantamount to destabilizing the Taiwan Strait,” he said, adding that the two sides of the Taiwan Strait will “eventually be reunified.” 
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Top diplomats from the United States and Canada held talks Wednesday that included discussion of trade, while U.S. President Donald Trump delayed a new 25% tariff on vehicle imports from Canada and Mexico for a month.

The U.S. State Department said Secretary of State Marco Rubio and Canadian Foreign Minister Mélanie Joly collaborated on “shared global challenges, secure borders, reciprocal trade, and economic prosperity.”

White House press secretary Karoline Leavitt told reporters that Trump spoke with top officials at automakers Ford, General Motors and Stellantis before announcing the tariff delays. She said Trump urged the automakers to move their Mexican and Canadian production to the United States to avoid the tariffs altogether.

Trump’s new levies on the two biggest U.S. trading partners remain in place for other products, although Leavitt said the president is open to hearing the case for other possible exemptions.

Trump announced the vehicle tariff delay in a statement after speaking earlier in the day with Canadian Prime Minister Justin Trudeau, who, according to The Associated Press, is not willing to lift Canada’s retaliatory tariffs if Trump leaves any tariffs on Canada.

Doug Ford, the Ontario provincial premier, said that if the U.S. tariff on Canadian vehicle exports to the U.S. remained in place, production at Canadian auto plants would start to shut down in about 10 days.

“People are going to lose their jobs,” he said.

The heads of Canada’s provinces said they were taking action to bolster trade within Canada and with countries abroad, in order to reduce their dependence on a single market, in reference to the United States.

Trump imposed the duties on Mexico and Canada on Tuesday, along with doubling tariffs on Chinese imported goods, to 20%. His action caused stock markets to plunge and threatened to boost the price of U.S. consumer goods and products that businesses need to operate.

Mexico, Canada and China all said Tuesday they would retaliate against Trump’s tariffs by increasing their own against U.S. products sent to their countries.

Trump said on his Truth Social media platform that Trudeau called him Wednesday morning to ask what could be done about the new U.S. tax.

“I told him that many people have died from Fentanyl that came through the Borders of Canada and Mexico, and nothing has convinced me that it has stopped,” the president wrote. “He said that it’s gotten better, but I said, ‘That’s not good enough.’ The call ended in a ‘somewhat’ friendly manner!”

Earlier in the week, Trudeau said Canada has surged personnel and equipment to the border to stop the flow of fentanyl to the United States, as Trump had demanded as a possible path to averting the new tariff on Canadian imports.

“Because of this work — in partnership with the United States — fentanyl seizures from Canada have dropped 97% between December 2024 and January 2025 to a near-zero low of 0.03 pounds seized by U.S. Customs and Border Protection,” Trudeau said.

U.S. Commerce Secretary Howard Lutnick told Bloomberg Television that Trump’s new tariffs will not be fully eliminated.

“There are going to be tariffs, let’s be clear,” Lutnick said. “But what [Trump is] thinking about is which sections of the market that can maybe — maybe — he’ll consider giving them relief until we get to, of course, April 2,” when Trump has said he will impose reciprocal tariffs on countries around the world that tax imports from the U.S.

The Canadian government said that nothing less than abandoning the new U.S. tariffs was acceptable.

“We’re not interested in meeting in the middle and having some reduced tariff. Canada wants the tariffs removed,” Canadian Finance Minister Dominic LeBlanc told the Canadian Broadcasting Corporation.

In a speech Tuesday night to the U.S. Congress, Trump acknowledged the tariff turmoil, saying, “Tariffs are about making America rich again and making America great again. There will be a little disturbance, but we’re OK with that. It won’t be much.”

Mexican President Claudia Sheinbaum said she would announce her country’s counter-tariff increase against U.S. goods on Sunday.

China placed tariffs of up to 15% on a wide array of U.S. farm exports. It also expanded the number of U.S. companies subject to export controls and other restrictions by about two dozen.

Some information for this story was provided by The Associated Press, Agence France-Presse and Reuters.
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BEIJING — China’s finance minister on Thursday left the door open to more stimulus measures on top of those announced at the annual parliament meeting this week, in the event the tariff-hit economy veers off its track towards its roughly 5% growth target.

Lan Foan, speaking to the media alongside other officials a day after Premier Li Qiang’s annual address to lawmakers, said China had ample policy room to deal with any domestic and external threats to economic growth.

The government announced on Wednesday more fiscal resources will be deployed in 2025 compared with last year to keep the economy growing at the same pace, while fighting a trade war with Washington.

U.S. President Donald Trump’s tariff increases on China are threatening China’s sprawling industrial complex, at a time when persistently sluggish household demand and the unraveling of the debt-laden property sector are leaving the economy increasingly vulnerable.

China’s state planner, Zheng Shanjie, said he was confident about reaching the annual growth target despite mounting external uncertainties and insufficient domestic demand.

The country will launch major projects in key sectors such as railways, nuclear power, water conservancy, and other key industries, aiming to attract private investment, Zheng said.
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WASHINGTON — U.S. President Donald Trump said on Monday that there was no chance for Mexico or Canada to prevent 25% tariffs from taking effect on Tuesday, sending financial markets reeling on the prospect of new economic barriers in North America.

“They’re going to have to have a tariff. So, what they have to do is build their car plants, frankly, and other things in the United States, in which case they no tariffs,” Trump said at the White House. He said there was “no room left” for a deal that would avert the tariffs by curbing fentanyl flows into the United States.

Trump also said reciprocal tariffs would take effect on April 2 on countries that impose duties on U.S. products.

U.S. stock indexes extended their losses after Trump’s comments. The Dow Jones Industrial Average was down 1.58% for the day, the S&P 500 was down 1.78% and the Nasdaq Composite was down 2.47%.

CEOs and economists say the action, covering more than $900 billion worth of annual U.S. imports from its southern and northern neighbors would deal a serious setback to the highly integrated North American economy.

The tariffs are scheduled to take effect at 12:01 a.m. EST (0501 GMT) on Tuesday. At that point Canada and Mexico would face tariffs of 25%, with 10% for Canadian energy. Mexican officials did not immediately respond to requests for comment.

Canadian Foreign Minister Melanie Joly told reporters that Ottawa would be ready to respond.

“There’s a level of unpredictability and chaos that comes out of the Oval Office, and we will be dealing with it,” she said.

Speaking on CNN, U.S. Commerce Secretary Howard Lutnick said both countries had made progress on border security but needed to do more to curb fentanyl flows into the U.S. to reduce deaths from the opioid drug.

Trump is also expected on Tuesday to raise fentanyl-related tariffs on Chinese imports to 20% from 10% currently, unless Beijing ends fentanyl trafficking into the U.S. Lutnick did not mention any potential changes to these duties, which would affect about $439 billion worth of annual imports.

Mexico’s response plans

Mexico, after avoiding the first round of Trump’s tariffs by striking a last-minute deal to send thousands of troops to its northern border, has stepped up anti-drug efforts and hinted at new measures on imported Chinese goods.

President Claudia Sheinbaum, in a press conference on Monday before Trump made his remarks, said her government was calm as it awaited Trump’s decision, but that Mexico but will respond if tariffs are imposed.

“We have a plan B, C, D,” Sheinbaum said, without giving any details. She added that coordination with the U.S. on trade and fentanyl trafficking has been “very good.”

According to the Centers for Disease Control and Prevention, 72,776 people died from synthetic opioids in 2023 in the U.S., chiefly from fentanyl.

Navarro: Trump unwavering

White House trade adviser Peter Navarro told CNBC on Monday that the inflationary impact from any tariffs would be “second-order small, so I don’t see the president wavering on any of this, because he knows in order to get to a world in which America is strong and prosperous, with real wages going up and [more] factory jobs. This is the path that he’s chosen.”

Trump on Saturday added another trade action to a cascade of tariff announcements over the past month, opening a national security investigation into imports of lumber and wood products that could result in steep tariffs. Canada, already facing 14.5% U.S. tariffs on softwood lumber, would be hit particularly hard.

During the prior week Trump ordered the revival of a tariff probe on countries that levy digital services taxes, proposed fees of up to $1.5 million every time a Chinese-built ship enters a U.S. port, and launched a new tariff investigation into copper imports.

These come in addition to his plans to determine higher U.S. “reciprocal tariffs” to match the tariff rates of other countries and offset their other trade barriers, a move that could hit the European Union hard over the value added taxes charged by EU countries.

But Trump’s “tariffs on steroids” agenda may keep inflation higher and could tip the global economy into recession, warned Desmond Lachman, a senior fellow at the conservative American Enterprise Institute.

Package orders

The White House late on Sunday issued technical orders from Trump related to tariffs on Mexico and Canada, declaring that low-value packages from the two countries cannot enter the U.S. duty-free under the “de minimis” exemption for shipments under $800. The ban will take effect once the Commerce Department determines that adequate screening measures take place, the order said.

Trump on Feb. 4 suspended the de minimis exclusion for low-value Chinese packages, but the U.S. Customs and Border Protection Agency had to pause the suspension because packages were piling up at U.S. airports without a way to screen them.

Fentanyl traffickers have exploited the de minimis package exemption to ship fentanyl and its precursor chemicals into the U.S., and officials say the packages often enter unscreened.
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U.S. President Donald Trump is planning to impose new tariffs Tuesday on Canadian and Mexican exports to the United States, but Commerce Secretary Howard Lutnick said Sunday they may not be as high as the 25% figure Trump was planning.

“That is a fluid situation,” Lutnick told the Fox News show “Sunday Morning Futures.”

“There are going to be tariffs on Tuesday on Mexico and Canada. Exactly what they are, we’re going to leave that for the president and his team to negotiate,” he said.

Lutnick’s comments were the first indication that the Trump administration may not impose the full 25% tariffs he announced last week on all goods from Mexico and non-energy imports from Canada, contending that the two U.S. neighbors are still not doing enough to curb the flow of illicit drugs into the United States.

Lutnick said Mexico and Canada have “done a reasonable job” securing their borders with the United States, although the deadly drug fentanyl continues to flow into the country.

Trump first announced the tariffs a month ago but then delayed their effective date after Mexican President Claudia Sheinbaum announced she would send 10,000 troops to Mexico’s northern border with the U.S. to curb the flow of narcotics, and Canadian Prime Minister Justin Trudeau said he would name a “fentanyl czar” to deal with the issue.

Trump is also adding another 10% tariff on Chinese goods Tuesday, doubling 10% duties he imposed on Feb. 4. Trump has blamed China as the source of fentanyl trafficking into the U.S.

In announcing the new tariffs last week, Trump said, “Drugs are still pouring into our Country from Mexico and Canada at very high and unacceptable levels. A large percentage of these Drugs, much of them in the form of Fentanyl, are made in, and supplied by, China.” He made the comments on his Truth Social platform.

Sheinbaum, whose trade-dependent economy sends 80% of its exports to the U.S., said last week Mexico was “expecting to reach a deal with the United States” before the new levy took effect but that if not, could impose retaliatory tariffs on U.S. products exported to Mexico.

When Trump first announced the hefty U.S. tariff on Canadian imports in early February, Trudeau said it was “entirely unjustified” and promised to impose a 25% tax starting March 12 on U.S. steel and aluminum products exported to Canada. Canada is the top exporter of both metals to the U.S.

Economists say that the tariffs Trump is imposing are likely to boost retail prices for consumers and the cost of materials for businesses. Mexico, Canada and China, in that order, are the three biggest national trading partners with the U.S., although collectively, the 27-nation European Union is larger than all three individually.

Trump, at his first Cabinet meeting of his new presidential term last week, said he would “very soon” announce a 25% tariff on EU exports to the U.S.

He contended that the EU was “formed [in 1993] to screw the United States” economically.

With Trump signaling the new tariff on goods sent to the U.S., the EU vowed to respond “firmly and immediately” to “unjustified” trade barriers and suggested it would impose its own tariffs on U.S. imports if Trump proceeded with his.

Trump said reciprocal tariffs on nations that levy taxes on U.S. exports are still set to take effect on April 2. He has also hinted at putting tariffs on automobile imports, lumber, pharmaceutical products and other goods.

Many economists have repeatedly warned that tariffs could lead to higher prices, boosting troublesome inflation in the U.S. Trump has acknowledged there could be short-term pain for Americans but has contended that tariffs would ultimately be beneficial to the U.S. economy, the world’s largest.

Trump says the tariffs he is imposing would be an incentive for foreign companies to do more manufacturing in the United States to avoid the tariffs on overseas shipment of their products to the U.S.

More immediately, Trump has focused on the flow of drugs into the U.S.

“More than 100,000 people died last year due to the distribution of these dangerous and highly addictive POISONS,” he said in his social media post.

“Millions of people have died over the last two decades,” Trump declared. “The families of the victims are devastated and, in many instances, virtually destroyed. We cannot allow this scourge to continue to harm the USA, and therefore, until it stops, or is seriously limited, the proposed TARIFFS scheduled to go into effect on MARCH FOURTH will, indeed, go into effect, as scheduled.”
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WASHINGTON — On a recent cold day in February, Virginia resident Raymond Fong sat outside the Tysons Corner mall for nearly two hours on a stool he brought from home to wait in line for a taste of milk tea from a new China-based beverage business.

China’s popular fruit and milk tea chain, Heytea, is one of a number of Chinese businesses that are looking for better economic opportunities abroad amid a slowing economy at home.

While U.S. President Donald Trump’s tariffs are creating more uncertainties for Chinese businesses at home, a growing number of companies from China are expanding in the U.S.

Heytea made its debut in the Washington metropolitan area on Valentine’s Day, marking the opening of the company’s 27th store in the United States. Heytea has opened nearly 80 stories outside China.

Fong visited the store just days after it opened.

“There were so many people in line that the mall was full, and we had to line up outside,” Fong told VOA’s Mandarin Service.

Since opening in 2012, Heytea has mostly focused on serving China’s domestic market. But in 2023, the company made a rapid shift to expand its reach overseas to countries including the U.S., United Kingdom, Australia, Canada, Malaysia and South Korea.

Other popular Chinese food and beverage brands have also made inroads into international markets.

Research company Rhodium Group reported a rebounding of overall Chinese investments abroad since the pandemic. Outbound investments by Chinese companies bottomed out at $47 billion in 2020 but then increased to $67 billion in 2022 and $103 billion in 2023, according to the Rhodium Group.

While food and beverage brands are just a small slice of these investments, these brands are what consumers see.

“Some people call 2023 ‘the first year of going overseas’ [for restaurants and beverage businesses]. I think there are several reasons. One is that the domestic market is no longer viable,” said a Beijing-based macroeconomic researcher who requested anonymity for fear of harassment from Chinese police.

The researcher added that the businesses “are all listed in Hong Kong and have raised funds. Hong Kong is an open market. They are listed there, raised money, and then they will not invest back to mainland China, so they want to test the waters in the United States.”

Success in Vietnam

As early as 2018, Mixue Ice City, a popular ice cream and tea chain founded in Henan province, China, began opening stores in Vietnam and then began picking up that expansion over the past few years with shops opening in South Korea, Australia, Malaysia and Singapore. The company now has over 7,000 stores in 11 countries, with more than 1,000 of those stores located in Vietnam.

Founded in Sichuan province, China, in 1994, hot pot chain Haidilao has restaurants in numerous countries and went public on the U.S. Nasdaq stock market in May 2024.

Eric Wong, a New York-based investor, said Chinese food companies’ decisions to expand overseas were made out of necessity, given the current state of China’s economy.

“Their profit margins within China are falling. The domestic market is very competitive, so they want to develop overseas,” Wong told VOA.

But operating overseas includes challenges, especially for businesses that have been accustomed to operating within China and using local supply chains.

“Take Haidilao as an example. They can succeed in China because they own the entire industrial chain. It hasn’t established this same advantage overseas, so it is more difficult to do business,” Wong said.

Still, Chinese companies can make high profits from international storefronts, despite the difficulties of taking the business abroad, the Beijing-based researcher said.

“Although the cost of opening a store in Europe and the United States is very high, it is still profitable. Because the cost is high, the threshold is high, and the profit margin is high. Of course, their market is not that big because the main market is Chinese,” the researcher said.

Food and beverage companies are just one part of a larger picture of Chinese producers seeking profits abroad. Expansionary efforts from brick-and-mortar companies such as Pop Mart and Miniso, which produce collectible toys and figurines, and online retailer Temu, display a cross-industry trend of desires to develop in Western markets.

Consumers within America have embraced the products and services from the three companies, with around 18% of American households having shopped on Temu, according to Earnest Analytics.

Despite their current successes, the future of these already complex operations with U.S. markets, given new tariffs levied on Chinese goods, is uncertain, said Wong.

According to Wong, the proportion of business conducted within the U.S. is already “getting smaller and smaller” as these companies look toward other markets without strict tariff policies.

VOA’s Katherine Michaelson contributed to this report.
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New Delhi  — India and the European Union agreed to wrap up a free trade deal by the end of this year, the two sides announced Friday following talks in the Indian capital between Prime Minister Narendra Modi and European Commission President Ursula Von der Leyen.

While negotiations between India and the EU have dragged on for years, analysts say there is a greater urgency to conclude a pact as the threat of tariffs by U.S. President Donald Trump prompts many countries to ramp up efforts to increase access to markets outside the U.S.

Von der Leyen came to New Delhi along with leaders of EU countries. Following talks with the Indian prime minister, she called India a “like-minded friend” and said that “we have tasked our teams to build on this momentum” to finalize a free trade pact.

Both sides also discussed elevating their defense and security partnership. Modi said they had prepared a “blueprint for collaboration” in areas such as trade, technology, investment and security.

Before her meeting with Modi, von der Leyen said the EU and India “have the potential to be one of the defining partnerships of this century” and it was time to take their strategic partnership to “the next level.”

A flux in geopolitics is pushing countries to diversify partnerships, analysts say.

“For India, which is scrambling to navigate the turbulence unleashed by Trump, Europe emerges as a valuable partner,” political analyst C. Raja Mohan wrote in The Indian Express newspaper. “While neither can afford to disengage from the U.S., both India and Europe must do more to strengthen their ties in response to Trump’s unpredictable policies.”

A free trade agreement between the EU and India “would be the largest deal of this kind anywhere in the world,” von der Leyen said. “It is time to be pragmatic and ambitious and to realign our priorities for today’s realities.”

Trump has said he will impose a 25 percent tariff on imports from the European Union. His plans for reciprocal tariffs also will hit Indian exports to the U.S.

The EU is India’s largest trading partner in goods — bilateral trade was more than $130 billion in 2023-24.

Negotiations between India and the EU began years ago but were stalled for eight years before resuming in 2021.

The main sticking points have been New Delhi’s reluctance to lower tariffs on key European imports to India, such as cars, whiskey and wine, while the EU has been reluctant to concede New Delhi’s demand to ease visa curbs on Indian professionals.

India also wants greater access to the EU for cheaper drugs and chemicals.

India, the world’s fifth largest economy with a large middle class, is seen as an attractive market but has high protectionist barriers.

Earlier this week, India and the UK also resumed trade talks during a visit by British business and trade secretary Jonathan Reynolds to New Delhi. India’s commerce minister, Piyush Goyal, said both countries aim to double bilateral trade in a decade. Reynolds said that securing a trade deal was a “top priority” for his government.

Trade analysts say there is a “sense of urgency” to seal trade pacts.

“It seems there is a real intent on part of India and other partner countries to do something this time. The timing is important – President Trump’s threat of tariffs can cause trade disruptions. So, I think countries want to conclude deals before the global mood changes from being relatively open to more protectionist,” according to trade analyst Biswajit Dhar in New Delhi.

While India has made slow progress in clinching free trade pacts in the past, it is now stepping up efforts to conclude deals amid fears that potential shifts in global trade could pose a challenge to meeting Prime Minister Modi’s goal of growing exports to $1 trillion by 2030.

“The trade uncertainties being unleashed by Trump’s tariffs will push the Indian government to look at the levels of protection in the country more closely. It can’t afford that any longer,” said Dhar.

“Every major country is interested in the large Indian market but complains about high tariffs.”
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WASHINGTON — As U.S. President Donald Trump moves forward with an expanding net of tariffs, including an additional 10% for Chinese imports starting next week, industry insiders and experts say closing existing loopholes and workarounds that companies use to avoid trade taxes is also key.

One practice that so far has helped companies from China — and others — to avoid being hit with tariffs is transshipment, or the transfer of goods to a second country, where the “Made in China” label is switched for another.

Berwick Offray, a ribbon manufacturer in the northeastern state of Pennsylvania, has first-hand experience with the practice. Founded in 1945, the company prides itself on its pledge to keep its products “Made in the USA” and its position as one of the largest manufacturers of ribbons in the world.

Earlier this month, the company sued a U.S. importer, TriMar Ribbon, for allegedly buying ribbons produced in China that were shipped to the United States through India to illegally avoid being subject to tariffs.

Ribbons made in China are cheaper and sold at below market value prices in the United States.

“The current allegations allege that TriMar imported ribbons from China into the United States through transshipment in India, and did not declare the correct country of origin upon entry,” said a notice issued from U.S. Customs and Border Protection, or CBP, when the agency agreed to investigate the case.

Daniel Pickard, an expert on international trade and an attorney at Buchanan Ingersoll & Rooney, which represents Berwick Offray, said there have been numerous cases of transshipment, especially when it comes to products from China.

“We have assisted several clients in submitting allegations to CBP against importers of products that have been transshipped from China through third countries such as Thailand, India and Canada,” Pickard told VOA. “Our clients typically are the U.S. manufacturers of those products that are competing against the Chinese imports that are engaged in evasion of duties.”

According to CBP data, there are currently 221 investigations of Chinese-made products suspected of transshipment tariff evasion.

Tariffs and loopholes

In early February, the Trump administration rolled out 10% blanket tariffs on all Chinese goods. On March 4, Chinese imports will face an additional 10% tariff.

While Trump has worked to reduce potential workarounds, including his executive order on reciprocal tariffs on trading partners, U.S. lawmakers have introduced measures to close the loopholes that would allow Chinese products to evade the president’s increased fees.

Republican Senator Rick Scott introduced the Stopping Adversarial Tariff Evasion Act on Jan. 31, aiming to strengthen enforcement mechanisms to ensure foreign manufacturers comply with customs and duties.

The legislation builds on efforts from Congresswoman Ashley Hinson, who introduced a bill in December intended to hold China accountable for tariff evasion by establishing a task force and reporting mechanisms to deal with instances of financial crime.

Jayant Menon, a senior fellow at the ISEAS Yusof Ishak Institute in Singapore, said the second Trump presidency will foster even more efforts to monitor tariff evasion and inspect products for compliance.

“While it is increasingly difficult to determine where a product is really made these days, given increasing globalization and widespread production under global supply chain, increased scrutiny can help with identifying bypass attempts,” Menon said.

“If bypass attempts are suspected, rightly or wrongly, then the country as a whole may be penalized with new tariffs,” he said.

Pickard said he expects more investigations will be launched by the new administration. He also looks forward to more efforts to counter discriminatory practices affecting U.S. companies.

“We anticipate CBP will increase its enforcement efforts as to the widespread customs fraud involving Chinese products,” he said.

Many stakeholders in the industry, Pickard said, are hoping to see these issues met with criminal prosecutions.
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NEW DELHI — The European Union plans to urge India to lower its high tariffs on cars and wine to boost trade, as it seeks to reduce its reliance on China, a senior official from the bloc said, ahead of a visit by the European Commission president to New Delhi.

Echoing U.S. President Donald Trump’s threat of reciprocal tariffs, the official said the EU would press India to cut tariffs on some goods and broaden market access for its products, while offering flexibility on agriculture issues to expedite free trade agreement talks.

“The Indian market is relatively closed, especially to key products of commercial interest to the European Union and our member states’ industries, including cars, wines and spirits,” said the official, who requested anonymity due to the confidential nature of the discussions.

EC President Ursula von der Leyen’s two-day visit from Thursday, accompanied by leaders of EU member nations, coincides with escalating geopolitical tensions, with Brussels and New Delhi set to outline key areas for deeper cooperation under their strategic partnership.

Leyen will meet Indian Prime Minister Narendra Modi on Friday, followed by discussions with trade minister Piyush Goyal.

The next trade negotiations round is scheduled for March 10-14 in Brussels.

The EU’s call for lower tariffs comes amid Trump’s threats to impose reciprocal tariffs from early April, which has caused anxiety for India’s exporters. Analysts from Citi Research estimate potential losses of about $7 billion annually.

The EU is India’s largest trading partner in goods, with trade nearing $126 billion in 2024, marking an increase of about 90% over the past decade.

Reducing reliance on China

As part of its “de-risking” strategy, the EU aims to strengthen economic and security ties with India, diversify supply chains, and reduce reliance on key products from China.

The EU also views India as a vital ally in addressing security challenges, the official said, including cyber threats and tensions in the South China Sea and Indo-Pacific.

Leyen is also expected to seek India’s support for a “peaceful and just deal” for Ukraine’s security, the official said.

The EU and India could sign an agreement to share classified security information to tackle common threats such as cyber attacks and terrorism, while exploring defense equipment trade.

Despite these potential benefits, trade analysts said the visit may not yield tangible results.

For substantial cooperation, the EU should acknowledge India as a data-secure country, said Ajay Srivastava, founder of the Delhi-based think-tank Global Trade Initiative, and India’s former negotiator on trade talks with the EU.

“While both parties have concerns about China, neither sees it as a top priority,” Srivastava said, adding India is focused on border tensions with China, while the EU is more concerned with the Ukraine-Russia conflict and NATO matters.
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U.S. consumer confidence plunged in February in its biggest monthly decline in more than four years, a business research group said Tuesday.

The Conference Board said its consumer confidence index dropped from 105.3 in January to 98.3 this month, the largest month-to-month decline since August 2021.

With U.S. consumer spending accounting for about 70% of the world’s largest economy, the three major stock indexes on Wall Street all fell on news of the report. The tech-heavy NASDAQ dropped by more than a percentage point.

The Conference Board said in a statement, “Views of current labor market conditions weakened. Consumers became pessimistic about future business conditions and less optimistic about future income. Pessimism about future employment prospects worsened and reached a 10-month high.”

Separately, U.S. Treasury Secretary Scott Bessent contended Tuesday that the U.S. economy is more fragile under the surface than economic indicators suggest, and he vowed to “reprivatize” growth by cutting government spending and regulation.

In his first major economic policy address, Bessent told a group at the Australian Embassy in Washington that interest rate volatility, enduring inflation and reliance on the public sector for job growth have hobbled the American economy, despite general national economic growth and low unemployment.

Bessent blamed “prolific overspending” under former President Joe Biden and regulations that have hindered supply-side growth as the main drivers of “sticky inflation.”

“The previous administration’s over-reliance on excessive government spending and overbearing regulation left us with an economy that may have exhibited some reasonable metrics but ultimately was brittle underneath,” he said.

Bessent said that 95% of all job growth in the past 12 months has been concentrated in public and government-adjacent sectors, such as health care and education, jobs offering slower wage growth and less productivity than private-sector jobs.

Meanwhile, he said jobs in manufacturing, metals, mining and information technology all contracted or flatlined over the same period.

“The private sector has been in recession,” Bessent said. “Our goal is to reprivatize the economy.”

Consumers had appeared increasingly confident heading toward the end of 2024 and spent generously during the holiday season. But U.S. retail sales dropped sharply in January, with unusually cold weather throughout much of the U.S. taking some of the blame.

Retail sales fell 0.9% last month from December, the Commerce Department reported last week. The decline, the biggest in a year, came after two months of robust gains.

With inflation remaining a concern for consumers and uncertainty about President Donald Trump’s plan to impose new or stiffer tariffs on imports from other countries, policymakers at the country’s central bank, the Federal Reserve, have taken a cautious approach on whether to further cut its benchmark interest rate.

The Fed left its key borrowing rate alone at its last meeting after cutting it at the previous three.

“Consumers’ confidence has deteriorated sharply in the face of threats to impose large tariffs and to slash federal spending and employment,” Pantheon Macroeconomics chief Samuel Tombs wrote in a note to clients.

Some information in this report came from The Associated Press, Reuters and Agence France-Presse.
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