Tariff hikes will backfire, and China can manage such 'external shocks,' a senior official says

A senior Chinese official says higher tariffs on Chinese exports will backfire by boosting prices paid by consumers. The official, Vice Commerce Minister Wang Shouwen, told reporters in Beijing that China can manage “the impact of external shocks" like higher tariffs. Asked about U.S. President-elect Donald Trump’s plan to impose 60% tariffs on Chinese goods, Wang said that would not sold the U.S. trade deficit. He said good trade relations between Beijing and Washington would benefit both sides. Despite the upbeat message, the threat of higher tariffs threatens to add to Beijing’s woes as China’s ruling Communist Party struggles to revive growth in the world's second-largest economy.