China says it will ‘fight to the end’ after Trump threatens to impose still more tariffs

 

China Vows Retaliation Against New U.S. Tariff Threats, Escalating Trade Tensions

China pledged on Tuesday to defend its interests "resolutely" through countermeasures after former U.S. President Donald Trump threatened to impose an additional 50% tariff on Chinese imports, intensifying a protracted trade dispute between the two economic giants.

In a sharp rebuke, China’s Commerce Ministry condemned the U.S. move to levy “so-called ‘reciprocal tariffs’” as baseless and emblematic of “unilateral coercive tactics.” The ministry accused Washington of undermining global trade norms and reaffirmed Beijing’s commitment to retaliatory actions, signaling potential further measures to protect its “sovereignty, security, and developmental interests.”

“China’s responses are justified and necessary to uphold fair international trade practices,” the ministry stated. “The U.S. escalation of tariffs represents a reckless miscalculation, revealing its reliance on intimidation. China will not yield and is prepared to confront this aggression decisively.”

Trump’s latest threat, posted Monday on Truth Social, warned of 50% tariffs effective April 9, 2025, unless China retracts recent trade measures. He also vowed to halt diplomatic negotiations, exacerbating fears of a deepening trade war that has rattled global markets. If enacted, cumulative U.S. tariffs on Chinese goods would soar to 104%, combining existing duties—a 20% levy targeting fentanyl trafficking and a 34% tariff announced days prior. Analysts warn such measures could inflate costs for American consumers and push China to divert exports to other markets, such as the European Union, while strengthening alliances abroad.

Financial markets have mirrored the turbulence, with stocks fluctuating amid uncertainty. Trump, who historically touted market performance as a policy success metric, dismissed recent volatility as a temporary setback, stating, “I see a promising outcome ahead.” However, attempts by his advisors to reassure investors have faltered, including a brief market uptick sparked by a debunked claim about tariff pauses.

The EU, meanwhile, signaled a strategic pivot toward diversifying trade partnerships. European Commission President Ursula von der Leyen highlighted “significant opportunities” in markets beyond the U.S., reflecting growing global realignment efforts.

In Hong Kong, leader John Lee denounced the tariffs as “economic bullying,” warning of risks to multilateral trade. He outlined plans to deepen integration with mainland China’s economy, expand free trade agreements, and bolster support for local businesses affected by the measures.

Bilateral trade between the U.S. and China reached $582 billion in 2024, with the U.S. goods and services deficit hovering between $263 billion and $295 billion. As tensions escalate, the repercussions of this standoff continue to reverberate across international economies, testing the resilience of global trade frameworks.