China has issued a defiant response after U.S. President Donald Trump threatened to impose a sweeping 50% increase in tariffs on Chinese imports, escalating fears of a renewed trade war between the world’s two largest economies.
In a strongly worded statement on Tuesday, China’s Commerce Ministry condemned the proposed U.S. tariffs as “completely groundless” and “a typical unilateral bullying practice,” vowing to take all necessary countermeasures to protect the country’s interests.
“If the U.S. insists on its own way, China will fight to the end,” the ministry warned. “The countermeasures China has taken are aimed at safeguarding its sovereignty, security, and development interests. They are completely legitimate.”
Trump’s threat came via Truth Social on Monday, warning that unless China rolls back a 34% tariff hike by April 8, the U.S. will impose additional duties on Chinese imports starting April 9. The former president also said all trade talks would be suspended if China failed to comply.
“If China does not withdraw its 34% increase above their already long term trading abuses by tomorrow, April 8th, 2025, the United States will impose ADDITIONAL Tariffs on China of 50%,” Trump posted.
If enacted, these tariffs would bring the total U.S. duty on Chinese goods to a staggering 104% — a combination of the proposed 50%, the 20% already levied in connection to fentanyl-related sanctions, and a separate 34% imposed last week.
The dramatic escalation threatens to further destabilize global markets. Stock exchanges from Tokyo to New York have already reacted with increased volatility as traders brace for the fallout of intensifying trade hostilities.
Trump, who has repeatedly touted his ability to drive stock market gains, downplayed market concerns, describing the potential economic pain as a necessary step toward a “beautiful picture” in the long term.
Despite efforts from Trump administration officials to reassure investors, market confidence has wavered. A brief rally sparked by a false report claiming top economic adviser Kevin Hassett was considering a tariff pause was quickly reversed after the White House labeled the report as “fake news.”
Economists warn that a tariff surge could raise costs for American consumers and prompt China to redirect its exports to other regions, particularly Europe. European Commission President Ursula von der Leyen responded by emphasizing the EU’s intention to deepen trade ties with other global partners, citing “vast opportunities” outside the United States.
Hong Kong’s Chief Executive John Lee also weighed in, criticizing the U.S. for what he called “ruthless behavior” that undermines global trade stability.
“Hong Kong will strengthen its economic integration with mainland China, sign more free trade agreements, and support local enterprises in facing this impact,” Lee said.
Trade between the U.S. and China totaled $582 billion in 2024, with the U.S. posting a goods and services deficit estimated between $263 billion and $295 billion. China remains a critical trade partner, especially in consumer goods, and any tariff increases are likely to impact American businesses and shoppers alike.
As tensions mount, global observers are watching closely to see whether diplomacy can prevail — or if the world is on the brink of another costly trade war.
