US reciprocal tariffs to inflict ‘serious harm’ on developing, poor nations: China

China's Commerce Minister Wang Wentao told the head of the World Trade Organization (WTO) that US reciprocal tariffs would "inflict serious harm" on poor nations, according to a ministry statement released Saturday, April 12.

US and China have been trading salvos of increasingly higher tariffs this month, raising fears of an intensifying trade war between the world's two largest economies that has sent global financial markets into a tailspin.

Economists warn that disruptions in trade between the tightly integrated US and Chinese economies will increase consumer prices and spark a global recession."These US 'reciprocal tariffs' will inflict serious harm on developing countries, especially the least developed countries, and could even trigger a humanitarian crisis," Wang told WTO chief Ngozi Okonjo-Iweala.

"The United States has continuously introduced tariff measures, bringing enormous uncertainty and instability to the world, causing chaos both internationally and domestically within the US," Wang added on the call.

US-China tariff war continues

Beijing said Friday that its 125 per cent tariffs on US goods would take effect on Saturday -- almost matching the staggering 145 per cent levies imposed by Washington on Chinese goods entering the US. However, China indicated it would ignore any further levies by US President Donald Trump because it said it no longer makes economic sense for importers to buy from the US.

China also said it would sue the WTO over the latest round of levies and dismissed Trump's mounting brinkmanship as a "joke" and a “numbers game.” China's retaliation sparked fresh market volatility, with stocks seesawing, gold prices surging, and US government bonds under pressure.

Trade between the two economic rivals is vast, with sales of Chinese goods to the United States last year totalling more than $500 billion -- 16.4 per cent of the country's exports, according to Beijing's customs data. Trump insisted Friday that his tariff policy was "doing really well" despite China's new hikes.

Earlier this week, he postponed punishing levies on multiple trade partners for three months after trillions of dollars were wiped off global markets. The White House said Trump is "optimistic" about a deal with China and that 15 other countries have offered "on the table" during the 90-day pause in tariffs.

US-China tariff talks

Meanwhile, on Saturday, Taiwan's government held its first tariff discussions with the US and expected more talks to build "strong and stable" trade ties. On Friday, Taiwan's President Lai Ching-te said that the island was on "the first negotiating list of the US government" as he looks to shield its exporters from a 32 per cent tariff.

Taiwan now faces a 10 per cent tariff, and Lai said talks would seek to strike a deal with Washington to bring that down to zero. Taiwan's Office of Trade Negotiations said Saturday that Taiwanese officials held a video conference the day before with "relevant US officials" without identifying them.

The two sides "exchanged views on Taiwan-US reciprocal tariffs, non-tariff trade barriers, and economic and trade issues, including export controls." Taiwan's trade surplus with the US is the seventh highest of any country, hitting $73.9 billion in 2024. Nearly 60 per cent of its exports to the US are information and comms technology products, including semiconductors.