China Prepares to Stand Firm Amid Potential Tariff Increase by the U.S.
The ongoing trade tensions between the United States and China are set to escalate as China declared its intention not to yield to President Trump’s latest threat. The U.S. President has announced plans to impose an additional 50% tariff on Chinese imports, intensifying the economic dispute between the two nations.
President Trump, via Truth Social, indicated his decision to enforce these tariffs should China fail to retract its recently declared 34% retaliatory tariff on U.S. goods. This tariff was initially announced in response to Trump’s earlier tariff imposition last week.
The Chinese Commerce Ministry issued a stern statement, emphasizing that China “will resolutely take countermeasures to safeguard its rights and interests.” The statement further criticized the U.S. actions, stating, “The U.S. tariff escalation threat against China compounds its mistake and further exposes its nature of blackmail, which China will never accept. China will fight till the end if the U.S. side is bent on going down the wrong path.”
While global equity markets have experienced significant volatility due to these developments, with recession fears looming, Asian markets showed a momentary recovery in early trading on Tuesday. Key indexes across China, Japan, Hong Kong, and South Korea recorded gains following previous losses.
Should the U.S. proceed with the additional tariffs, the cumulative tariff on Chinese imports for the year could reach 104%. This includes a 20% tariff implemented earlier in Trump’s presidency, followed by a subsequent 34% increase.
Data from the U.S. Trade Representative shows that the U.S. imported $438.9 billion worth of goods from China in the previous year, marking a 2.8% increase from 2023.
Gabriel Wildau, managing director at consultancy agency Teneo, suggests that China is prepared for a prolonged economic battle. He stated, “This strategy of patient resistance is based on a conviction that seven years of efforts to reduce reliance on the U.S. has rendered China economically resilient to the trade war now underway.” He further expressed that China’s leadership believes that over time, the U.S. will face domestic political challenges in sustaining the tariff policies.
This article reflects updates from official translations.
Reporting contributions by Aowen Cao.
