Tensions between China and the United States escalated Tuesday after President Donald Trump threatened to impose a massive new 50% tariff on Chinese imports.
In response, China vowed to “fight to the end,” warning of more countermeasures to protect its interests.
The Chinese Commerce Ministry labeled the potential tariffs as “completely groundless,” calling them an example of U.S. “unilateral bullying.”
China, the world’s second-largest economy, has already retaliated with tariffs of its own, and the ministry hinted that further measures could be on the way if the U.S. follows through on its threat.
“The countermeasures China has taken are aimed at safeguarding our sovereignty, security, and development interests,” the ministry said in a statement. “If the U.S. insists on its path, China will fight to the end.”
The latest threat from Trump came after a week of escalating tensions, with both countries imposing tariffs on each other.
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Trump’s 50% tariff warning, if enacted, would further raise the U.S. tariff on Chinese products to an alarming 104%. This could mean higher prices for American consumers and potentially push China to seek alternative trade partners, such as the European Union.
The U.S.-China trade war has already disrupted global markets, with stock prices in major cities like Tokyo and New York showing increased volatility. Economists warn that the prolonged conflict could have damaging effects on both economies, with risks of inflation and slower growth.
Trump, however, has remained unfazed, framing the economic pain as necessary for achieving a fairer global trade system. “I don’t mind going through it because I see a beautiful picture at the end,” Trump said.
In Hong Kong, Chief Executive John Lee condemned the U.S. tariffs as “bullying,” warning that they would hurt global trade and increase uncertainty.
Lee also indicated that Hong Kong would strengthen its economic ties with China and pursue new free trade agreements to mitigate the effects of the trade war.
