In Beijing, China announced on Tuesday that it will not acquiesce to President Trump’s recent threat to levy an additional 50% tariff on Chinese imports, signaling an intensification of the trade tensions between the world’s two largest economies.
President Trump has indicated on Truth Social that he intends to impose new tariffs on China unless Beijing retracts a 34% retaliatory tariff on U.S. goods. This tariff was introduced in response to his initial tariff measures announced last Wednesday.
In a forceful statement, China’s Ministry of Commerce affirmed that the country “will resolutely take countermeasures to safeguard its rights and interests.” The ministry’s statement criticized the U.S. tariff threat and characterized it as a continuation of a strategic error and an act of blackmail that China would not accept. It also stated that China would persist in its resistance if the U.S. continues in this direction.
Global equity markets have been affected by growing recession concerns following Trump’s “Liberation Day” declaration, which involved tariffs impacting most global countries and U.S. imports. On Tuesday, however, Asian stock markets saw a recovery in early trading, following substantial losses on Monday, with gains observed in China, Japan, Hong Kong, and South Korean indexes.
If President Trump proceeds with his plans, U.S. tariffs on Chinese imports could reach a combined 104% this year. This figure includes initial 20% tariffs imposed earlier in his presidency and an additional 34% announced on Wednesday.
According to the U.S. Trade Representative’s office, the U.S. imported $438.9 billion in goods from China last year, marking a 2.8% increase from 2023.
Gabriel Wildau, a managing director at Teneo, expressed the view that Beijing would likely adopt a strategy of sustained economic resistance. He noted that China’s previous efforts to reduce dependency on the U.S. have positioned it to withstand current trade tensions. Chinese leaders reportedly believe that, in the long term, President Trump may face challenges in managing the political repercussions of his tariff strategies.
The story has been updated to include official translations. Aowen Cao contributed to the report.
