BEIJING (AP) — China mentioned Tuesday it could “struggle to the tip” and take countermeasures towards america to safeguard its personal pursuits after President Donald Trump threatened a further 50% tariff on Chinese language imports.
The Commerce Ministry mentioned the U.S.‘s imposition of “so-called ‘reciprocal tariffs’” on China is “utterly groundless and is a typical unilateral bullying follow.”
China, the world’s second-largest economic system, has taken retaliatory tariffs and the ministry hinted in its newest assertion that extra could also be coming.
“The countermeasures China has taken are geared toward safeguarding its sovereignty, safety and growth pursuits, and sustaining the traditional worldwide commerce order. They’re utterly professional,” the ministry mentioned.
“The U.S. risk to escalate tariffs on China is a mistake on high of a mistake and as soon as once more exposes the blackmailing nature of the US. China won’t ever settle for this. If the US insists by itself method, China will struggle to the tip,” it added.
Trump’s risk Monday of extra tariffs on China raised contemporary issues that his drive to rebalance the worldwide economic system might intensify a financially harmful commerce battle. Inventory markets from Tokyo to New York have develop into extra unstable because the tariff battle worsens.
Trump’s risk got here after China mentioned it would retaliate towards U.S. tariffs he announced last week.
“If China doesn’t withdraw its 34% improve above their already long run buying and selling abuses by tomorrow, April eighth, 2025, america will impose ADDITIONAL Tariffs on China of fifty%, efficient April ninth,” Trump wrote on Truth Social. “Moreover, all talks with China regarding their requested conferences with us will likely be terminated!”
If Trump implements his new tariffs on Chinese language merchandise, U.S. tariffs on Chinese language items would attain a mixed 104%. The brand new taxes can be on high of the 20% tariffs introduced as punishment for fentanyl trafficking and his separate 34% tariffs introduced final week. Not solely might that improve costs for American customers, it might additionally give China an incentive to flood different nations with cheaper items and search deeper relationships with different buying and selling companions, notably the European Union.
Trump steadily bragged about inventory market beneficial properties throughout his first time period, and the specter of losses on Wall Avenue was considered as a possible guardrail on dangerous financial insurance policies in his second time period. However that hasn’t been the case, and Trump has described days of monetary ache as crucial.
“I don’t thoughts going via it as a result of I see a ravishing image on the finish,” he mentioned.
Trump officers have steadily appeared on tv to make the case for his insurance policies, however none of their explanations has calmed the markets. The one enchancment got here from a false report that high financial adviser Kevin Hassett mentioned Trump was contemplating a pause on all tariffs aside from China. Inventory costs spiked earlier than the White Home denied it was true by calling the publish “pretend information.”
China is likely one of the U.S.’s high buying and selling companions, particularly for shopper items, and the tariffs — basically a tax on imports paid by U.S. corporations — will finally be handed on to the buyer.
European Fee President Ursula von der Leyen mentioned the European Union would concentrate on commerce with different nations apart from america, saying there are “vast opportunities” elsewhere.
U.S. complete items commerce with China had been an estimated $582 billion in 2024, making it the highest dealer in items with the U.S. The 2024 deficit with China in items and providers commerce was between $263 billion and $295 billion.
In Hong Kong, the place shares had been barely increased Tuesday, Chief Government John Lee blasted the most recent U.S. tariffs as “bullying,” saying the “ruthless conduct” has broken international and multilateral commerce and introduced nice dangers and uncertainties to the world.
Lee mentioned town would hyperlink its economic system nearer to China’s growth, signal extra free commerce agreements, entice extra international corporations and capital to Hong Kong, and assist native enterprises in dealing with the affect of the tariffs.
Related Press writers Chris Megerian and Josh Boak in Washington, Christopher Bodeen in Taipei, Taiwan, and Kanis Leung in Hong Kong contributed to this report.
