China announces it will fight against Trump’s latest tariff threats, escalating concerns of a prolonged and damaging trade war between the world’s two largest economies.
In a strong statement, Beijing criticized Washington’s tariff measures and signaled its intent to respond forcefully if the United States pushes ahead.
The Chinese Ministry of Commerce condemned the proposed tariff hike as a serious policy mistake. It declared that if the United States continues on this path, China will resist without hesitation. The warning came shortly after U.S. President Donald Trump pledged to raise import taxes on Chinese goods by another 50 percent unless Beijing reverses its recent retaliatory tariffs.
Tariff tensions reach new highs
According to a White House official, the latest tariff plans would increase this year to 104 percent. The breakdown includes a 34 percent rise effective April 9 and an earlier 20 percent hike. These escalating tariffs have triggered fears across global markets, with many investors now bracing for long-term trade separation between the two economies.
Economists and analysts are watching the situation closely. Michelle Lam, Greater China economist at Societe Generale, noted the firmness in China’s tone. She pointed out that without a shift in Trump’s approach, the risk of economic decoupling will rise significantly. Talks between the two nations remain uncertain, especially with Trump warning he may end all dialogue if China refuses to back down.
Market reaction and economic measures
Chinese authorities acted to protect their markets in response to the growing tensions. The yuan weakened, falling to its lowest level since September 2023. Meanwhile, the offshore yuan reached a two-month low. China’s state-backed funds, the national team, were directed to purchase domestic assets to support financial stability.
The Hang Seng China Enterprises Index, which had recently seen its steepest decline since the financial crisis, rebounded with a 2.26 percent gain. Reports suggest that some economic stimulus measures could be advanced to cushion the impact of the trade conflict.
Political disconnect worsens the outlook
Political communication between the two nations is at a standstill. Since returning to the White House, Trump has not contacted Chinese President Xi Jinping. This marks the longest period in two decades without direct engagement between the leaders of the two powers.
According to analysts, the absence of dialogue can worsen the disagreement since both parties insist on their respective stands. Financial institutions worldwide survive with unease as they hope for any development in the situation.