China has declared its intent to resist and act against the United States in response to President Donald Trump’s threat to increase tariffs on Chinese goods by 50%. The Chinese Commerce Ministry criticized the U.S. imposition of these tariffs, labeling them as “completely groundless” and a form of “unilateral bullying.” In retaliation, China has already introduced its own tariffs and hinted at additional measures. The ministry emphasized that China’s actions are aimed at protecting its sovereignty, security, and development interests.
“The threat from the U.S. to increase tariffs is a mistake following another mistake, and it showcases the coercive tactics of the U.S. We will never accept such measures. We are prepared to fight to the very end,” the ministry asserted.
The escalating trade tensions have caused worry among analysts and traders about the potential impact of a global trade war. Market stability has been disrupted as concerns mount over Trump’s approach to rebalancing the global economy, which seems to be pushing towards a damaging trade conflict. Stock markets, from Tokyo to New York, have responded with increased volatility due to the uncertainty.
Trump’s recent tariff announcement follows China’s promise to retaliate against tariffs he revealed earlier. He had issued an ultimatum via social media, stating if China doesn’t retract its 34% tariff increase, the U.S. would apply an additional 50% tariff on Chinese imports starting April 9th. He also mentioned that all discussions with China would be halted. Such measures could lead to U.S. tariffs on Chinese products reaching a staggering 104%.
These tariffs could result in higher costs for American buyers while motivating China to diversify its trade by exploring stronger ties with other global partners, specifically the European Union.
Amidst these developments, many in Beijing struggle to stay updated with the rapid news updates but believe in China’s resilience. “Trump keeps changing his statements. Ultimately, he’s seeking gains, but I trust in our nation,” remarked Wu Qi, a construction worker in Beijing. On the other hand, Paul Wang, a vendor of stainless-steel accessories, emphasized the growing importance of the European market amid U.S. tariffs.
Some businesses, such as those owned by Jessi Huang and Yang Aijia that import American chemicals, feel threatened by the looming tariffs, fearing potential layoffs or closures. “Facing redundancies or even having to close is a real possibility,” stated Huang.
Experts suggest China has numerous strategies to counteract the U.S., such as halting fentanyl cooperation, restricting agricultural imports, or targeting American service industries operating in China. In 2024, China was the U.S.’s top trading partner, with goods trade reaching approximately $582 billion, despite a trade deficit estimated between $263 billion and $295 billion.
Chinese Foreign Ministry spokesperson Lin Jian downplayed the likelihood of genuine dialogue with the Trump administration, emphasizing that the U.S. actions do not indicate a desire for sincere discussion. Lin underlined that if the U.S. aims for dialogue, it should be based on equality and mutual trust.
In Hong Kong, stock markets saw a brief uptick, but local leader John Lee criticized the new U.S. tariffs as “bullying.” He said such “ruthless behavior” has damaged international trade avenues and introduced considerable risks and uncertainties. He highlighted Hong Kong’s goal to tighten its economic ties with China, pursue new free trade agreements, and attract foreign investments to counteract the tariffs’ implications.