China says it will ‘fight to the end’ after Trump threatens additional 50% tariffs
The trade conflict between the United States and China has escalated sharply following U.S. President Donald Trump’s threat to impose an additional 50% tariff on Chinese imports unless Beijing retracts its recently announced 34% counter-tariffs on American goods. China has responded strongly, labeling the move as “blackmail” and vowing to “fight to the end” through retaliatory measures to safeguard its sovereignty and economic interests.
Trump’s Threat: On Monday, Trump announced that if China does not reverse its 34% tariff hike by April 8, 2025, the U.S. would implement an additional 50% tariff starting April 9. This would bring cumulative tariffs on Chinese imports to a staggering 104%, exacerbating an already tense trade war.
China’s Retaliation: Beijing has introduced its own countermeasures, including export controls on rare earth minerals, suspension of U.S. agricultural imports, and filing a complaint at the World Trade Organization (WTO). China emphasized that its actions are legitimate and aimed at maintaining international trade order.
Economic Impact
This escalation has significant implications for global markets and industries:
Market Volatility: Stock markets worldwide have plunged, with the Dow Jones Industrial Average dropping 1,200 points and European indices like the FTSE 100 closing down by over 4%. Asian markets also suffered heavy losses.
Sectoral Disruptions: Key U.S. industries such as aviation and semiconductors are expected to face severe repercussions. Boeing’s planned jet deliveries to Chinese airlines and semiconductor exports from companies like Intel and Micron are likely to be adversely affected.
Statements from Both Sides
China’s Position: China’s commerce ministry criticized the U.S.’s “unilateral bullying practices” and stated that it would take all necessary steps to defend its rights. Despite its tough stance, Beijing remains open to dialogue, reiterating that “there are no winners in a trade war”.
Trump’s Rationale: Trump defended his tariff strategy as necessary to address longstanding trade imbalances and unfair practices by China. He warned other nations against resisting his policies, asserting that this approach prioritizes “America first”.
The escalating tariffs have heightened fears of a prolonged global trade war with severe economic consequences for both nations and their trading partners. Economists have raised concerns about the limited effectiveness of higher tariffs in achieving desired outcomes while warning of potential recessions triggered by disrupted supply chains and declining consumer confidence.
