China will ‘fight to the end’ over tariffs

China said Tuesday it would “fight to the end” and take countermeasures against the United States to safeguard its own interests after President of the United States Donald Trump threatened an additional 50 per cent tariff on Chinese imports.

The Chinese Commerce Ministry said the US’s imposition of “so-called ‘reciprocal’ tariffs” on China is “completely groundless and is a typical unilateral bullying practice”.

China, the world’s second-largest economy, has announced retaliatory tariffs and the ministry hinted in its latest statement that more may be coming.

“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 said.

“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.

Analysts and traders worry about a global trade war.

Trump’s threat Monday of additional tariffs on China raised fresh concerns that his drive to rebalance the global economy could intensify a financially destructive trade war. Stock markets from Tokyo to New York have become more unstable as the tariff war worsens.

The threat came after China said it would retaliate against US tariffs he announced last week.

“If China does not withdraw its 34 per cent increase” by April 8, the United States would impose additional tariffs of 50 per cent on China, effective April 9, the US president said on social media.

If he follows through on the threat, US tariffs on Chinese goods would reach a combined 104 per cent. The new taxes would be on top of the 20 per cent tariffs announced as punishment for fentanyl trafficking and his separate 34 per cent tariffs announced last week. Not only could that increase prices for American consumers, it could also give China an incentive to flood other countries with cheaper goods and seek deeper relationships with other trading partners, particularly the European Union.

On the streets of Beijing, people said they found it hard to keep track of all the announcements, but expressed belief in their country’s ability to weather the storm.

“Trump says one thing today and another tomorrow. Anyway, he just wants benefits, so he can say whatever he wants,” said Wu Qi, 37, who works in construction.

Others were less sanguine. Paul Wang, 30, who sells stainless accessories, including necklaces, bracelets, and tongue studs to Europe, said the European market was now more important after the extra US 50 per cent tariffs and he would be watching to see which other firms in his field would be competing in that space.

Jessi Huang and Yang Aijia, whose companies import chemicals from the US, said the tariffs, including potential Chinese retribution, could force them to close up shop.

“It would be very hard and very likely to have a layoff, maybe even closing,” Huang said, “I might not be able to find another job if I get laid off.”

China still has a range of options to strike back at the Washington, experts said, including suspending cooperation on combating fentanyl, placing higher quotas on agricultural products and going after the US trade in services in China such as finance and law firms.

US total goods trade with China was an estimated US$582 billion in 2024, making it the top trader in goods with the US The 2024 deficit with China in goods and services trade was between US$263 billion and US$295 billion.

Foreign Ministry spokesperson Lin Jian appeared to give short shrift to talk of dialogue with the Trump administration.

“I don’t think what the US has done reflects a willingness for sincere dialogue. If the US really wants to engage in dialogue, it should adopt an attitude of equality, mutual respect and mutual benefit,” Lin said.

In Hong Kong, where stocks were slightly higher Tuesday, Chief Executive John Lee blasted the latest US tariffs as “bullying”, saying the “ruthless behaviour” has damaged global and multilateral trade and brought great risks and uncertainties to the world.

Lee said the city would link its economy closer to China’s development, sign more free trade agreements, attract more foreign companies and capital to Hong Kong, and support local enterprises in coping with the impact of the tariffs.

The Trump administration claims that the European Union’s tariffs and trade barriers against the United States amount to a 39 per cent tariff on US goods, while China’s, it says, are 67 per cent, and India’s 52 per cent.

Those are much higher than what other sources say. The World Trade Organization puts the EU’s average tariffs on all imports at 2.7 per cent, China’s at 3 per cent, and India’s at 12 per cent.

The Trump administration says it includes currency manipulation, government subsidies, and other barriers to trade in its calculations.

AP