China vows to ‘fight to the end’ against latest Trump tariff threat
Tensions between the world’s two largest economies have increased overnight as Beijing vowed to “fight to the end”, in response to a new wave of US tariffs.
The statement followed a dramatic escalation by president Donald Trump, who threatened an additional 50 per cent tariff on Chinese goods, unless Beijing reverses its newly announced 34 per cent reciprocal levy – retaliation for Trump’s earlier 34 per cent tariff hike on Chinese imports.
The new US tariffs are set to take effect Wednesday.
China’s commerce ministry accused the US of “blackmail”, dubbing the move “a mistake on top of a mistake”, and said it would take ‘resolute countermeasures’ if Washington doesn’t back down.
State media in China went even further, with Xinhua publishing an editorial accusing Trump of “naked extortion”, and blasting his approach as a ‘coercion dressed up as policy.
Trump remained unapologetic. In a Truth Social post on Monday, he wrote: “If China does not withdraw its 34 per cent increase… the United States will impose additional tariffs on China of 50 per cent.”
He also threatened to cut off all trade talks with Beijing, effectively putting negotiations on ice.
This tit-for-tat tariff war has unnerved global markets. After steep losses Monday, including a historic plunge in Hong Kong’s Hang Seng Index, Asian markets saw a modest rebound on Tuesday.
China’s blue chip stocks gained 0.7 per cent, and Japan’s Nikkei jumped 6 per cent following a late night trade call between president Trump and Japanese prime minister Shigeru Ishiba.
Experts have acknowledged the high stakes of this standoff. “Whoever swerves first risks losing face and leverage”, said Wen-ti Sung of Antlantic council.
China, he added, appears unwilling to show any signs of weakness, fearing that any concession will only encourage Trump to demand even more.
Meanwhile, the fallout is spreading beyond China. The EU has proposed 25 per cent counter tariffs on a wide rage of US products, and is calling for a “zero for zero” tariff deal.
With the Wednesday deadline looming, the question now lies within which side, if either, will blink – or, whether the global economy is barrelling toward an all out trade war.