The trade war between the United States and Peru could have repercussions for the Port of Chancay, a multipurpose terminal inaugurated in Peru on November 14 in the presence of Chinese President Xi Jinping during the APEC 2024 meeting.

In statements to Bloomberg, Mauricio Claver-Carone, a Republican Party member and advisor to Donald Trump, suggested applying a 60% tariff to any product passing through the new port built by the “Chinese regime in Peru.”

The terminal's construction involved a significant investment by the Chinese company Cosco Shipping, which holds 60% of the shares, or $1.3 billion.

Claver-Carone proposed that this measure apply to all goods passing through Chancay, “or through any port owned or controlled” by China in the region.

The former senior director for the Western Hemisphere at the White House National Security Council during Trump’s first term said this tariff should apply to products from both China and South American countries if they use infrastructure promoted by the Beijing regime, which continues to expand its presence and influence, Bloomberg reported.

“Any product passing through Chancay or any Chinese-owned or controlled port in the region should be subject to a 60% tariff as if the product were from China,” he stated.

Claver-Carone explained that the main purpose of this initiative is to prevent transshipment—the entry of goods from third countries into a territory to be re-exported to the United States at lower tariffs than would apply to direct shipments.

These arguments align with Trump’s recent rhetoric accusing Beijing of manipulating trade rules for its benefit. Trump has promised to increase pressure on the Chinese regime to “unbalance” the trade relationship, consistent with his “America First” policy.

China Reacts

Chinese President Xi Jinping inaugurated the Chancay port in an elaborate ceremony alongside his Peruvian counterpart on Thursday.

Xi highlighted that the facility would establish a direct shipping line from Chancay to Shanghai, reducing transit times and logistics costs.

At a business event on Friday, Ren Hongbin, a former official at the Chinese Ministry of Commerce, said he believes the port could help facilitate trade between China and the United States.

Separately, a former high-ranking official at China’s central bank said China would retaliate if Trump follows through on his pledge to impose a 60% tariff on Chinese imports.

“If Trump and the administration levy a 60% tariff on China, I think China will retaliate and bring the case to the WTO,” Zhu Min, a former deputy governor at the People’s Bank of China, told Bloomberg Television. “There are many things they can do.”

Zhu, who now serves as chairman of the Chinese National Institute of Financial Research at Tsinghua University, did not specify the potential retaliatory measures. However, he noted that the tariffs could impact the Chinese currency, which is influenced by market forces such as trade and capital flows.

“It would be nice if both sides can sit down, talk, and cut a deal because, economically, both sides really complement each other,” he said.