BEIJING/WASHINGTON, April 8 – China on Tuesday slammed U.S. President Donald Trump’s threat to impose an additional 50% tariff on Chinese goods, calling it “blackmail” and vowing to retaliate if Washington follows through. The move escalates already heightened trade tensions between the world’s two largest economies, with both sides digging in despite growing fears of economic fallout.
“The U.S. threat to escalate tariffs against China is a mistake on top of a mistake, which once again exposes the U.S.’s blackmailing nature,” China’s commerce ministry said in a statement, adding that Beijing “will fight to the end” if Washington insists on further hikes.
Trump has given Beijing 24 hours to withdraw the 34% retaliatory tariffs it imposed on U.S. goods last week, following Washington’s own 34% duties on Chinese imports. If no agreement is reached, total new levies on Chinese goods entering the U.S. could rise as high as 104% this year, marking a dramatic intensification of the trade war. China reiterated its preference for “dialogue” over confrontation, warning that “there are no winners in a trade war.”
In a commentary published in the ruling Communist Party’s official mouthpiece, People’s Daily, Beijing signaled it was prepared for a protracted standoff. “U.S. tariffs will have an impact, but the sky won’t fall,” the commentary said, emphasizing the country’s resilience. “The more pressure we get, the stronger we become.”
Since the first round of tariffs in 2017, China has maintained that its economy can withstand American pressure, even as analysts warn of potential disruptions.
Markets reacted sharply to the developments. Hong Kong’s Hang Seng Index plummeted 13.2% on Monday, its steepest one-day drop since the Asian financial crisis, before partially rebounding in early trading on Tuesday. Economists voiced skepticism about the efficacy of further U.S. tariffs.
“Since China already faces a tariff rate in excess of 60%, it doesn’t matter if it goes up by 50% or 500%,” said Xu Tianchen, senior economist at the Economist Intelligence Unit. “What China can do is stop U.S. farming purchases, match tariffs, and expand its export controls across the periodic table of chemical elements.” As both nations prepare for a fresh round of economic sparring, global markets and supply chains hang in the balance.
