A new tariff standoff between Washington and Beijing is escalating fast, with China warning it “will fight to the end” if the United States moves forward with additional punitive trade measures.
Chinese Foreign Ministry spokesperson Lin Jian on Tuesday issued a sharp response to former US President Donald Trump’s latest threat to impose a 50% tariff on Chinese goods. “If the US insists on launching a tariff war or a trade war, China will fight to the end,” Lin said, as tensions flared over retaliatory moves by both sides.
The Commerce Ministry said the US’ imposition of “so-called ‘reciprocal tariffs’” on China is “completely groundless and is a typical unilateral bullying practice”. “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 was quoted as saying by AP.
“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,” it added.
On Monday, Trump announced on Truth Social that China had imposed “Retaliatory Tariffs of 34%, on top of their already record setting Tariffs, Non-Monetary Tariffs, Illegal Subsidization of companies, and massive long term Currency Manipulation.” He warned that unless China withdraws its latest 34% tariff hike by April 8, the US would respond with “ADDITIONAL Tariffs on China of 50%, effective April 9th.”
“Any country that Retaliates against the U.S. by issuing additional Tariffs… will be immediately met with new and substantially higher Tariffs,” Trump wrote. He also declared a freeze on talks with China, saying, “All talks with China concerning their requested meetings with us will be terminated!”
The growing tariff confrontation comes as China’s economy continues to face pressure from weak domestic consumption and a lingering housing market crisis.
Beijing has set a modest 5% GDP target for 2025 amid mounting external and internal headwinds.
According to Larry Hu, chief China economist at investment bank Macquarie, Trump’s 34% tariff could shave off 2 to 2.5 percentage points from China’s GDP growth. “The impact could manifest itself through multiple channels such as falling US demand for Chinese goods, the potential global economic slowdown and the hit on export re-routing,” Hu wrote in a research note, as reported by the South China Morning Post.
The new 34% tariff brings Trump’s total levies on Chinese exports to 54%, including previous duties from his first term. China has responded with its own 34% tariffs on US exports, targeting American agricultural products in particular.
In 2024, China’s exports to the US stood at $438 billion, while it imported $143 billion in goods from the US. With tit-for-tat measures escalating, analysts warn the economic fallout could ripple far beyond both countries.
