‘Will fight to the end’: China spews rage after Trump’s 50 pc tariff hike threat
China defends retaliatory tariffs on US; says they were imposed to safeguard its sovereignty, security, and development interests, and maintaining international trade order
Smarting from US President Donald Trump’s threat to levy an additional 50 per cent tariff on Chinese imports, Beijing on Tuesday (April 8) said it would “fight to the end” and take countermeasures against the United States to safeguard its interests.
‘Groundless, bullying practice’
The Chinese Commerce Ministry said the US' imposition of “so-called reciprocal tariffs'” on China is “completely groundless and is a typical unilateral bullying practice.” China has imposed retaliatory tariffs, and the ministry hinted in its latest statement that many more will be coming.
Also read: Trump threatens 50 per cent more tariffs on China
“The countermeasures China has taken are aimed at safeguarding its sovereignty, security and development interests, and maintaining the normal international trade order. They are completely legitimate,” the ministry said.
‘US threat a mistake’, says China
“The US threat to escalate tariffs on China is a mistake on top of a mistake and once again exposes the blackmailing nature of the US. China will never accept this. If the US insists on its own way, China will fight to the end.”
Trump's threat on Monday of additional tariffs on China raised fresh concerns that his drive to rebalance the global economy could intensify a financially destructive trade war. Stock markets from Tokyo to New York have become more unstable as the tariff war worsens.
Why did Trump threaten China?
Trump's threat came after China said it would retaliate against US tariffs he announced last week.
Also read: Wall St totters with Trump tariffs, but Asian markets open on bullish note
“If China does not withdraw its 34% increase above their already long-term trading abuses by tomorrow, April 8th, 2025, the United States will impose ADDITIONAL Tariffs on China of 50%, effective April 9th,” Trump wrote on Truth Social.
“Additionally, all talks with China concerning their requested meetings with us will be terminated!”
Repercussions of hiked tariffs
If Trump implements his new tariffs on Chinese products, US tariffs on Chinese goods would reach a combined 104 per cent. The new taxes would be on top of the 20 per cent tariffs announced as punishment for fentanyl trafficking and his separate 34 per cent tariffs announced last week. Not only could that increase prices for American consumers, it could also give China an incentive to flood other countries with cheaper goods and seek deeper relationships with other trading partners, particularly the European Union.
Also read: Trump tariff tremors leave Sensex, Nifty shuddering with global peers
Trump frequently bragged about stock market gains during his first term, and the threat of losses on Wall Street was viewed as a potential guardrail on risky economic policies in his second term. But that hasn't been the case, and Trump has described days of financial pain as necessary.
“I don't mind going through it because I see a beautiful picture at the end,” he said.
Turbulent times for markets
Trump officials have frequently appeared on television to make the case for his policies, but none of their explanations has calmed the markets. The only improvement came from a false report that top economic adviser Kevin Hassett said Trump was considering a pause on all tariffs except for China. Stock prices spiked before the White House denied it was true by calling the post “fake news.” China is one of the US's top trading partners, especially for consumer goods, and the tariffs — essentially a tax on imports paid by US companies — will eventually be passed on to the consumer.
Also read: Tariffs, visa tensions amidst weak demand trigger perfect storm for Indian IT stocks
Federal Reserve Chair Jerome Powell warned Friday that the tariffs could increase inflation, and he said, “There's a lot of waiting and seeing going on, including by us,” before any decisions would be made.
European Commission President Ursula von der Leyen said the European Union would focus on trade with other countries besides the United States, saying there are “vast opportunities” elsewhere.
US total goods trade with China were an estimated $582 billion in 2024, making it the top trader in goods with the US The 2024 deficit with China in goods and services trade was between $263 billion and $295 billion.
(With inputs from agencies)
