BEIJING — In response to President Donald Trump’s threat of an additional 50% tariff on Chinese imports, China declared on Tuesday that it will “fight to the end” and implement countermeasures to protect its interests.
The Chinese Commerce Ministry criticized the U.S. for imposing “so-called ‘reciprocal tariffs'” on China, labeling it as “completely groundless” and “typical unilateral bullying practice”.
China has already enacted retaliatory tariffs and hinted at the possibility of taking further measures. According to the ministry, these countermeasures are in place to safeguard China’s sovereignty, security, and development interests, as well as to maintain the normal international trade order. They insisted that these actions are legitimate. The ministry also stated that the U.S. threatens to escalate tariffs is a “mistake on top of a mistake” and reveals the “blackmailing nature of the U.S.”. China will never accept this threat, the ministry stated, adding that if the U.S. persists with its approach, China will “fight to the end”.
Trump’s announcement on Monday of additional tariffs on China increased concerns about his strategy to rebalance the global economy and intensified fears of a financially destructive trade war. Stock markets worldwide have become unstable as tensions escalate.
The U.S. threat of further tariffs came after China announced its intention to retaliate against the U.S. tariffs that Trump declared last week.
If China does not retract its 34% increase above their already long-term trading abuses by tomorrow, April 8th, 2025, the United States will implement ADDITIONAL Tariffs on China of 50%, effective April 9th. Additionally, all talks with China concerning their requested meetings with us will be terminated.
If Trump proceeds with his new tariffs on Chinese products, U.S. tariffs on Chinese goods will reach a combined 104%. This new tax, in addition to the 20% tariffs announced as punishment for fentanyl trafficking and the separate 34% tariffs announced last week, may raise prices for American consumers. It could also motivate China to export cheaper goods to other countries and foster stronger relationships with other trading partners, particularly the European Union.
Trump has frequently referenced stock market gains during his first term; however, the looming possibility of losses on Wall Street was viewed as a potential deterrent to risky economic policies in his second term. Nevertheless, Trump has framed the financial turbulencies as necessary steps towards his ultimate goal.
While Trump officials have been diligent in defending his policies on television, their explanations have yet to calm the markets. The only brief improvement came from a false report that top economic adviser Kevin Hassett stated Trump was considering a pause on all tariffs except for China. A spike in stock prices subsequently followed the White House denial of this report, which they declared to be “fake news”.
China remains one of the U.S.’s leading trading partners, particularly for consumer goods, and the tariffs—essentially taxes on imports paid by U.S. companies—will inevitably impact consumers.
Federal Reserve Chair Jerome Powell warned that the tariffs could contribute to inflation and stated that there is a great deal of uncertainty, including for the Federal Reserve, before any future decisions are made.
European Commission President Ursula von der Leyen echoed similar sentiments, stating that the European Union would focus on trade with countries other than the United States, emphasizing that there are “vast opportunities” elsewhere.
In 2024, U.S. total goods trade with China amounted to an estimated $582 billion, making it the top goods trading partner. The trade deficit with China in goods and services for 2024 is estimated to range between $263 billion and $295 billion.
Source: https://time.com/7275610/china-tariffs-trump-trade-war-countermeasures-retaliatory-tit-for-tat/
