Xi hits Hollywood, Trump whacks China’s Temu and Shein as trade slugfest worsens

Beijing has slashed the number of Hollywood films it will allow to screen and Washington hiked tariffs on parcels carrying goods from Chinese retailers, as Xi and Trump continue their bruising trade war.

Donald Trump speaks during a cabinet meeting, warning of the "transition cost" from his tariff policies. Picture: AFP

Beijing has slashed the number of Hollywood films it will allow to screen in China and Washington has hiked tariffs on parcels carrying goods from Chinese retailers, as Xi Jinping and Donald Trump continue to order daily counterpunches in their bruising trade war.

Using a justification it employed at the start of its 2020 trade assault on Australia, Beijing claimed its heightened restrictions on American movies was a response to Chinese public sentiment.

“The US government’s abuse of tariffs against China will inevitably lead to a further decline in the favourable perception of US films among the Chinese audience,” the China Film Administration said in a statement.

“We will adhere to the law of the market and respect the choices of the audience, and moderately reduce the number of US films imported.”

The new restriction — which will limit already tight quotas on the number of foreign films allowed to screen in the country — came as state media amplified Beijing’s warnings about safety concerns for Chinese citizens considering travel or study in America, another reprise of measures used on Australia in 2020.

Chinese Foreign Ministry spokesman Lin Jian late on Thursday said the safety warnings had been triggered by “the US’s hegemonic and bullying acts of exerting maximum pressure”.

US sharemarkets slumped on Thursday following huge gains the day before after Trump unwound most of his international tariff regime, reducing levels to all countries except China to 10 per cent. The S & P 500 closed down 3.5 per cent, while the Nasdaq fell 4.3 per cent.

Australia’s ASX 200 was down 1.5 per cent in early trading on Thursday.

The American President on Thursday conceded there were “transition problems” with his tariff plan and flagged some products might get exceptions to relieve pressure on American businesses and consumers.

Trump repeated his optimism that China would eventually come to the table to do a deal. But simultaneously his administration clarified that American tariffs on China added up to 145 per cent, not the 125 per cent had been widely reported.

“There will be a transition cost, and transition problems, but in the end, it’s going to be a beautiful thing,” Mr Trump said. “We are doing, again, what we should have done many years ago … We allowed some countries to get very big and very rich at our expense.”

On Thursday, the Trump administration announced a further hike on a tariff on shipments priced up to US$800 to 120 per cent, up from an earlier hike to 90 per cent. A parcel loophole had previously allowed goods from Chinese e-commerce retail firms Temu and Shein to evade American tariffs entirely. The new impost is forecast to decimate what had been a booming trade to America for the popular Chinese firms.

President Xi has shown no sign of accepting the American president’s offer to “do a deal” and mend the rupture between the world’s two biggest economies.

Chinese government mouthpieces on Thursday quoted Mao Zedong as they declared China would “never yield”.

“We are Chinese. We are not afraid of provocations. We don’t back down,” Chinese Foreign Ministry spokeswoman Mao Ning said in a post on X. Her statement included a link to a video of a fiery speech given by Chairman Mao after he sent the People’s Liberation Army to fight America in Korea in the 1950s.

China’s Commerce ministry said Beijing pressure, threats and extortion were no way to deal with the country.

“Our position is consistent and clear — the door to dialogue is open, but any discussions must be conducted on the basis of mutual respect and equality,” said He Yongqian, spokeswoman for the Ministry of Commerce.

China’s leadership team reportedly met on Thursday for an ad hoc meeting to discuss “support measures for housing, consumer spending and technological innovation”, according to Bloomberg, citing sources not allowed to be identified discussing the matter. China’s financial regulators were also reportedly convening to discuss measures to boost the economy and stabilise the markets.

Traders work on the floor of the New York Stock Exchange on Thursday. Picture: Getty Images via AFP

Earlier, EU chief Ursula von der Leyen said the bloc would suspend a planned package of tariffs on US goods “to give negotiations a chance” after Mr Trump’s U-turn on massive duties.

The 27-nation bloc had on Wednesday greenlit its first measures targeting US products, in retaliation for duties on steel and aluminium exports. It had yet to announce a response to Trump’s universal tariffs — now paused for 90 days.

“While finalising the adoption of the EU countermeasures that saw strong support from our Member States, we will put them on hold for 90 days,” the European Commission president said. “If negotiations are not satisfactory, our countermeasures will kick in.”

EU trade chief Maros Sefcovic said later on Thursday, local time, that he spoke to his US counterparts, Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer.

“Another call … as we’re set to suspend EU countermeasures and enter meaningful negotiations. Constant communication and daily updates keep us moving forward,” he said on X.

The EU measures approved Wednesday would target nearly €21 billion ($38bn) worth of US products including soybeans, motorcycles and beauty products.

The bloc is still working on its response to Mr Trump’s universal tariffs — which hit the EU at a rate of 20 per cent — and the ones imposed on the auto sector, and Ms von der Leyen stressed that “preparatory work on further countermeasures continues”.

“All options remain on the table,” she said.

Brussels has made it clear however it would prefer to avoid retaliation.

With AFP