China Urges US to Remove Unilateral Tariffs, Raising Global Economic Risks

China’s Ministry of Commerce has formally urged the United States to dismantle unilateral tariff measures enacted since 2018 (notably Section 301 tariffs). The appeal comes amid sustained US–China trade frictions that raised average tariff rates on affected goods from about 3.1% pre-dispute to over 20% during the initial escalation. Bilateral measures have touched roughly $370–450 billion of trade, cutting US agricultural exports (soybeans fell ~70% at peak) and disrupting technology and semiconductor supply chains. Studies cited include IMF and Peterson Institute findings on supply-chain fragmentation and a Federal Reserve Bank of New York estimate that tariffs have cost the average US household about $1,300 annually. Key statistics (2020–2024) show US–China trade volume swinging between $560B and $690B and average tariff rates near 19–22% on affected goods. Global responses vary: the EU favors multilateral approaches, ASEAN benefits from trade diversion, and WTO dispute mechanisms remain constrained. Markets have reacted with sector-specific volatility (technology, industrials), exchange-rate movement (USD/CNY sensitivity), and renewed emphasis on nearshoring and friendshoring. Policy pathways include phased tariff rollbacks tied to market-access concessions or broader trade-framework negotiations; however, political and national-security concerns (export controls, investment screening) complicate rapid resolution. For traders: expect heightened volatility in tech and industrial equities, currency swings in USD/CNY, and potential commodity and agricultural price shifts if tariff rhetoric intensifies or eases. This development is a reminder to monitor trade-policy headlines, supply-chain indicators, and sector exposure when sizing positions.