China has threatened to «resolutely take countermeasures» in response to Donald Trump’s threat of an additional 50% tariff on Chinese imports. In a statement, the Commerce Ministry said the US’s imposition of «so-called ‘reciprocal tariffs'» on China is «completely groundless and is a typical unilateral bullying practice.» It hinted that more retaliatory tariffs may come in the future, emphasizing that the countermeasures China has taken are aimed at safeguarding its sovereignty, security, and development interests while maintaining the normal international trade order. The ministry stated that the US threat to escalate tariffs on China is a mistake on top of a mistake, showcasing the blackmailing nature of the US. China expressed that it will never accept this and is willing to fight to the end if the US insists on its own way.
Trump’s threat, delivered on social media, followed China’s announcement of retaliatory measures against US tariffs announced the previous week. Trump warned that if China does not withdraw its 34% increase above their alleged long-term trading abuses by a specified date, the United States would impose additional tariffs of 50% on Chinese imports. He also stated that all talks with China concerning requested meetings will be terminated.
If Trump follows through with his plans, US tariffs on imports from China would reach a combined 104%. These new taxes would be added on top of the existing 20% tariffs imposed as punishment for what the president perceives as China’s role in the US fentanyl crisis, as well as the separate 34% tariffs announced recently.
Asian markets rallied as they opened higher on Tuesday. Japan’s Nikkei 225 share benchmark saw a 6% increase after a significant drop the previous day, with the broader Topix trading 6.8% higher. The US semiconductor index also climbed 2.7% overnight, while S&P and Nasdaq futures each rose by over 1% during Asian trade. South Korea’s Kospi gained 2%, and markets in Australia and New Zealand also showed positive movements.
On the other hand, most US markets experienced a downturn on Monday. The S&P 500 closed the day 0.23% lower, the Dow Jones Industrial Average finished 0.91% down, and the Nasdaq ended slightly positive, up 0.10%. In the UK, the FTSE 100 index closed 4.38% down, marking one of the most substantial drops in years, reminiscent of the early days of COVID-19 lockdowns but less severe than the decline seen on the previous Friday.
Trump reiterated his stance on tariffs, ruling out any pause in the implementation. He emphasized the need for fair deals with every country and stated that those unwilling to participate in fair trade agreements with the US would be excluded. Trump emphasized that the US has been taken advantage of by many countries for years and emphasized the need to stop being «the stupid people» in international trade dealings.
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