China promised Tuesday to “fight to the end” against US President Donald Trump’s 50% tariffs, exacerbating a trade war that has already ripped trillions from global markets.
Trump’s tariffs have threatened an international recession, but he has refused to slow his trade policies despite a market sell-off.
Beijing, Washington’s biggest economic adversary and commercial partner, responded by imposing 34pc tariffs on US imports on Thursday, intensifying a trade war.
After China’s rapid reply, Trump warned that he would apply additional levies if Beijing didn’t cease fighting his duties, raising the total levies on Chinese imports to 104%.
“I have great respect for China but they can not do this,” Trump remarked in the White House.
“We only have one chance… It’s an honor to do it.”
China quickly denounced US “blackmailing” and said it would “never accept” those taxes.
“If the US insists on going its own way, China will fight it to the end,” a commerce ministry official said Tuesday.
“If the US escalates tariffs, China will resolutely take countermeasures to protect its rights and interests,” the ministry stated.
Beijing maintained its desire for “dialogue” with Washington and its belief that “no winners in a trade war”.
Market chaos
Trump’s tariffs shook global markets.
Hong Kong’s Hang Seng fell 13.2% on Monday, its worst day since the Asian financial crisis, before recovering on Tuesday.
After a turbulent session, the Dow and S&P 500 fell.
Tuesday opened with losses in Thailand, Indonesia, and Vietnam, a major export hub.
Prime Minister Lawrence Wong of Singapore said parliament his government was “very disappointed by the US move”.
“These are not friend-like actions.”
Stock market valuations have dropped trillions in recent sessions.
Trump reiterated Monday that he was “not looking” at a tariff suspension.
He also canceled tariff discussions with China but said the US will engage with any country.
After Shanghai shares plummeted, China’s central bank issued a statement before trading began Tuesday to support a sovereign fund as it buys exchange traded funds to stabilize the market.
Tokyo markets rose Tuesday after Treasury Secretary Scott Bessent told Fox News that Japan would have “priority” in US tariff negotiations “just because they came forward very quickly” amid the trade war.
After a 10pc “baseline” duty on US imports from around the world took effect Saturday, several countries will face higher charges starting Wednesday, including 34pc for Chinese goods and 20pc for EU goods.
