In a bold statement issued on Tuesday, China declared it will “fight to the end” against President Donald Trump's proposal to impose an additional 50% tariff on Chinese goods. This potential tariff hike comes as numerous countries are hurrying to negotiate trade agreements with the United States. Should the plan be fully implemented, the cumulative tariffs on goods imported into the U.S. from China could soar to an astonishing 104%.
The Chinese Commerce Ministry firmly opposed Trump's tariff threats, labeling its previous countermeasures as “entirely justified.” In a statement released on Tuesday, the ministry emphasized, “If the U.S. insists on its own way, China will fight to the end.” They deemed Trump's threat to increase tariffs on Chinese imports as a “mistake upon a mistake,” reflecting a strong stance against escalating trade tensions.
Trump's ultimatum for an additional 50% duty on Chinese goods is set to take effect on Wednesday unless Beijing retracts its own 34% tariffs on all U.S. goods by Tuesday. These retaliatory tariffs were enacted in response to the levies announced by the Trump administration just last week. In a post on Truth Social, Trump declared, “Additionally, all talks with China concerning their requested meetings with us will be terminated!” He further stated that negotiations with other countries, who have also requested meetings, would commence immediately.
Amid the rising tensions, the Chinese Commerce Ministry urged the United States to cancel all unilateral tariff measures and to resolve trade disputes through dialogue rather than coercion. “Pressure and threats are not the correct way to deal with China,” they stated. The ministry reiterated that “there are no winners in a trade war,” highlighting that protectionism ultimately leads nowhere. “China will resolutely take countermeasures to safeguard its own interests,” they added, underlining their commitment to defending national economic interests.
The announcement of potential tariffs has caused fluctuations in the stock markets. On Tuesday, stocks in mainland China and Hong Kong saw a notable rise as Beijing attempts to stabilize its markets amid concerns over Trump's tariffs. The Hang Seng Index in Hong Kong surged approximately 1.58% by 12:10 p.m. local time, rebounding after experiencing its most significant single-day decline in nearly three decades due to China’s retaliatory measures. Similarly, China’s blue-chip CSI 300 Index increased by 0.9% following a sharp drop of 7% on Monday.
In related news, Trump mentioned on Sunday that China could see a reduction in tariffs if it agrees to a deal regarding the sale of TikTok’s U.S. operations. He confirmed that discussions between China and the United States were “pretty close” to fruition regarding the popular video-sharing app but claimed that Beijing backed out due to the newly announced 34% tariff. “If I gave a little cut in tariffs, they’d approve that deal in 15 minutes, which shows you the power of tariffs,” he remarked to reporters aboard Air Force One.
As tensions persist, TikTok’s China-based parent company, ByteDance, announced on Saturday that it is still in negotiations with the U.S. government and has not yet reached any formal agreement. The situation surrounding TikTok and the trade relationship between the U.S. and China continues to evolve, highlighting the complex dynamics of international trade and diplomacy in the current climate.
