Donald Trump has threatened China with an additional 50% tariffs amidst his trade war. Trump has raised a concern for China in his attempt to improve the economy for the US. The effect of the additional tariffs is visible in the Chinese stock market as well as in Tokyo.
As we know, China is the second-largest economy globally; it has come up with plans to retaliate against Trump’s tariffs. China will “fight to the end,” ensuring to take countermeasures against the United States. The plan is to protect the Chinese market and imports. The US should prepare to get high tariffs from China in return. They have already placed 15% tariffs on agricultural goods. China will reciprocate with more tariffs if Donald Trump does not stop adding to the tariffs.
The 15% tariffs by China are imposed on imported goods such as corn, cotton, wheat, and chicken. Besides, a 10% increase in fruits, vegetables, soybeans, pork, beef, and sorghum to name a few. China also plans to bar its companies from exporting dual-use equipment to the US.
JUST IN: 🇨🇳🇺🇸 China imposes 15% tariffs on United States coal and Liquefied natural gas (LNG). pic.twitter.com/zFvxj4Itcl
— BRICS News (@BRICSinfo) February 4, 2025
The Commerce Ministry has already stated, “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.” Moreover, the ministry emphasized how the US is blackmailing China to cave in while making several mistakes in a row.
This way, the trade war will be never-ending and long imposition of one tariff over another. Even Elon Musk took to social media to appeal to Trump to not impose his tariffs. He states that the tariffs will hurt American companies more than Chinese ones.
China’s retaliation has only made Donald Trump lay down more tariffs. His Truth Social account stated, “If China does not withdraw its 34% increase above their already long-term trading abuses by tomorrow, April 8th, 2025, the United States will impose ADDITIONAL Tariffs on China of 50%, effective April 9th.” He also went on to say that their meetings to discuss the tariffs were terminated.
The new Donald Trump tariffs on Chinese products imply their goods will have a 104% combined tariff. The total goods trade between the US and China was estimated to be $582 billion in 2024. However, the deficit with Chinese goods and services ranged from $263 billion to $295 billion. Chief Executive John Lee has said the US is showing ruthless behavior and bullying China with these tariffs. This will have a long-term impact on global trade as markets have already crashed.
“What’s your reaction to China’s retaliatory tariffs?”
🔥President Trump: “That’s fine — It’s fine. We’re going to do very well against China and against everybody else.”
— Benny Johnson (@bennyjohnson) February 4, 2025
Since the new tariff will be introduced over the 20% tariff and the additional 34% tariffs from last week, the prices will go high for both China and the US. One way out for China can be developing trade relations with other nations and delivering cheaper goods. According to the European Commission President Ursula, now is the time for China to diversify its trade.
Following this advice may help China build deep trade relations with other nations. China’s goal is to fight till the end even if it means a war. The country will not be pressured or coerced to the US’s attempts.
