China has 'tools' to 'offset' economic turmoil, says premier

China has enough "tools" to "offset" economic turbulence, its Premier Li Qiang said on Tuesday, quoted by the official Xinhua news agency, after the United States imposed harsh tariffs on its products.

"China's macroeconomic policy this year fully takes into account various uncertainties and has a sufficient reserve of policy tools. China can offset adverse external effects," Li said in a phone conversation with European Commission President Ursula von der Leyen, according to Xinhua.

Since returning to the White House in January, US President Donald Trump has imposed 20% tariffs on Chinese goods and last week announced additional levies of 34% starting Wednesday, April 9.

China responded on Friday by announcing it would slap 34% tariffs on all American goods starting April 10, and Trump threatened on Monday to impose an additional 50% tariff on Chinese goods if Beijing continues its retaliatory measures.

Li Qiang criticized, in his conversation with Von der Leyen, the "protectionism" and "bullying" of the US, which launched a series of taxes that caused turmoil in the financial markets.

"China's firm measures are not only aimed at safeguarding its sovereignty, security and development interests, but also at preserving international trade rules and international fairness and justice," the Chinese premier said.

"No country can isolate itself without taking others into account," he emphasized.

Von der Leyen "called for a negotiated solution to the current situation and stressed the need to avoid further escalation," the European Commission said.