China’s commerce ministry took a firm stand against the United States after Donald Trump’s recent threat to impose additional tariffs. The threats, described as “blackmail” by the Chinese authorities, covered potential new 50% tariffs on Chinese goods should Beijing not rescind a 34% reciprocal tariff they had imposed. In response, the ministry vowed to take strong countermeasures and declared that China would fight to the end if the US chooses to continue down this “wrong path.”

As a result of these escalating tensions, Asian markets experienced a slight increase in early trading on Tuesday, following a tumultuous previous day triggered by Trump’s tariff statements. The situation has prompted calls for a moratorium, with concerns over the potential negative impact on the US economy.

China remains resolute in its position, refusing to back down in what appears to be a game of high-stakes diplomacy. The situation has drawn parallels to a 1987 speech by former US President Ronald Reagan, in which he denounced the use of tariffs, a video of which has been widely shared on Chinese social media, indicating a shared sentiment against Trump’s approach.

Japan and Hong Kong have seen some revival in their stock markets, following agreements and announcements regarding trade talks and reciprocal actions. EU has also proposed counter-tariffs and is open to negotiations for a “zero for zero” deal with the US to mitigate the trade war’s impact. Taiwan, affected by the tariffs, has expressed readiness to negotiate a zero-tariffs agreement and removal of trade barriers to increase investment in the US, attributing their trade surplus to soaring US demand for technology products.

Source: https://www.theguardian.com/world/2025/apr/08/china-vows-to-fight-to-the-end-against-latest-trump-tariff-threat