Will ‘fight to the end’: China

Tariff war |  Trump  accused of ‘naked extortion’ by threatening ‘additional 50% tariffs if Beijing did not  drop its own 34% reciprocal tariff

Agencies BEIJING 

China’s government says it will “fight to the end” if the US continues to escalate the trade war, after Donald Trump threatened huge additional tariffs in response to China’s retaliatory measures. On Tuesday, China’s commerce ministry accused the US of “blackmail” and said the US president’s threats of additional 50% tariffs if Beijing did not reverse its own 34% reciprocal tariff were a “mistake on top of a mistake”. It vowed to “resolutely take countermeasures”, adding: “China will fight to the end if the US side is bent on going down the wrong path.”

On Tuesday, Asian markets appeared to improve slightly in early trading. “The US  threat to escalate tariffs on China is a mistake on top of a mistake and once again exposes the blackmailing nature of the US. China will never accept this. If the U.S. insists on its own way, China will fight to the end,” the ministry added. Trump’s threat Monday of additional tariffs on China raised fresh concerns that his drive to rebalance the global economy could intensify a financially destructive trade war. Stock markets from Tokyo to New York have become more unstable as the tariff war worsens.

Trump’s threat came after China said it would retaliate against  US tariffs he announced last week. “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,” Trump wrote on Truth Social. “Additionally, all talks with China concerning their requested meetings with us will be terminated!”

If Trump implements his new tariffs on Chinese products, US tariffs on Chinese goods would reach a combined 104%. The new taxes would be on top of the 20% tariffs announced as punishment for fentanyl trafficking and his separate 34% tariffs announced last week. Not only could that increase prices for American consumers, it could also give China an incentive to flood other countries with cheaper goods and seek deeper relationships with other trading partners, particularly the European Union.

A scathing editorial in Chinese official state news outlet Xinhua accused Trump of “naked extortion”. “Utterly absurd is the underlying logic of the United States: ‘I can hit you at my will, and you must not respond. Instead, you must surrender unconditionally’,” it said. “This is not diplomacy. It is blunt coercion dressed up as policy.”

On the streets of Beijing, people said they found it hard to keep track of all the announcements, but expressed belief in their country’s ability to weather the storm. “Trump says one thing today and another tomorrow. Anyway, he just wants benefits, so he can say whatever he wants,” said Wu Qi, 37, who works in construction. Others were less sanguine. Paul Wang, 30, who sells stainless accessories to Europe, said the European market was now more important after the extra  US 50% tariffs and he would be watching to see which other firms in his field would be competing in that space.