“China Vows Retaliation as Trade War Escalates”
China has pledged to implement countermeasures in response to a sweeping new set of U.S. tariffs announced this week by President Donald Trump. In a statement released Thursday, China’s Ministry of Commerce condemned the measures and called on the U.S. to immediately withdraw the tariffs, which it said undermine the principles of international trade and multilateral negotiations.
The newly imposed tariffs mark a significant escalation in trade tensions between the world’s two largest economies. Beginning Saturday, Chinese exports to the U.S. will face a 10% baseline tariff, with additional reciprocal tariffs bringing the total to 34% by April 9. Combined with previous tariffs enacted earlier this year, the effective rate on Chinese goods will rise to 54%, with some estimates placing the average U.S. tariff on Chinese imports as high as 76%.
President Trump also signed an executive order closing the “de minimis” loophole, which had allowed low-value goods from China and Hong Kong to enter the country duty-free. The administration has framed these steps as part of a broader strategy to protect American manufacturing and rebalance trade relationships.
However, China and other trade partners have sharply criticized the move. Officials argue that the U.S. has long benefited from global trade and that these new tariffs disrupt decades of negotiated agreements. China has indicated it will take “all necessary measures” to defend its interests but has not yet announced specific retaliatory actions.
Beyond China, the tariffs affect a wide range of countries. Nations like Vietnam, Mexico, India, and Malaysia—which have previously benefited from companies diversifying away from China—are now facing tariffs ranging from 24% to 46%. This has complicated global supply chain strategies that had evolved during the previous trade disputes in Trump’s first term.
European businesses have also expressed concern. Jens Eskelund, President of the EU Chamber of Commerce in China, noted that many firms had recently restructured their supply chains to reduce exposure to U.S.-China friction. A second round of disruptions, he warned, would be difficult to manage in the short term.
Despite the tariffs, analysts say the direct economic impact on China may be limited. William Hurst, a professor at the University of Cambridge, stated that while certain sectors will face significant challenges, the U.S. represents a declining share of China’s export market. He added that China is likely to strengthen trade ties with Europe, Southeast Asia, and Africa.
Still, Chinese producers have voiced concerns about increased competition and price wars in alternative markets. As profit margins shrink, some warn that the situation could contribute to broader deflationary trends within China’s economy.
In response to mounting pressure, Beijing has reaffirmed its 2025 economic growth target of “around 5%” and promised further fiscal stimulus, monetary easing, and domestic demand initiatives. Analysts say the relatively restrained policy announcements at March’s Two Sessions may have been strategic, leaving room for stronger measures if the trade war deepens.
A potential meeting between President Trump and Chinese President Xi Jinping is reportedly under consideration for June. Analysts believe such a meeting could be pivotal, though both leaders are expected to tread carefully. Craig Singleton, senior fellow at the Foundation for Defense of Democracies, described the dynamic as a “paradox of pressure and pride,” where each leader is reluctant to appear weak while seeking leverage.
As tensions rise, observers warn that delays in diplomacy could risk prolonging or escalating the conflict, with global economic consequences.
This article was rewritten from one originally posted on Reuters.