DiplomaticCorrespondent

China declared on Tuesday that it would “fight to the end” and implement countermeasures to protect its interests after U.S. President Donald Trump threatened to impose a further 50% tariff on Chinese goods.The Commerce Ministry criticised the United States for introducing what it termed “so-called ‘reciprocal tariffs,’” describing them as “completely groundless” and an example of “typical unilateral bullying.”China has already responded with retaliatory tariffs and signalled in its latest statement that more could follow.“The countermeasures taken by China aim to safeguard its sovereignty, security, and development interests, as well as to uphold the normal order of international trade. These actions are entirely lawful,” the ministry stated. “The U.S. decision to escalate tariffs on China is a repeated blunder and again highlights the coercive nature of the U.S. approach. China will never yield. Should the U.S. persist, China will fight to the end.”Trump’s latest threat, issued on Monday, sparked renewed fears that his efforts to restructure global trade could trigger a deeper and more damaging trade war. Stock markets from Tokyo to New York have experienced increased volatility as tensions rise.The threat followed China’s announcement that it would retaliate against tariffs introduced by Trump the previous week.“If China does not withdraw its 34% increase, which adds to their already long-term trade abuses, by April 8th, 2025, the United States will impose ADDITIONAL tariffs of 50% on China, effective April 9th,” Trump wrote on Truth Social. “Furthermore, all discussions with China regarding their requested meetings will be cancelled!”If enacted, the new tariffs would raise the total U.S. duty on Chinese imports to 104%. This includes the new 50%, plus the 20% levied as a penalty for fentanyl trafficking and an earlier 34% announced last week. These increases could lead to higher costs for U.S. consumers and prompt China to redirect lower-cost goods to other markets while strengthening trade ties with partners such as the European Union.During his first term, Trump frequently pointed to stock market gains as a measure of success, and some analysts believed the threat of market losses could discourage aggressive economic policies during a second term. However, that hasn’t held true, as Trump has downplayed economic disruptions.“I don’t mind going through it because I see a beautiful picture at the end,” he remarked.Although Trump administration officials have regularly appeared on TV to defend the tariffs, their arguments have failed to calm the financial markets. The only temporary lift came from a false report claiming top economic adviser Kevin Hassett said Trump was considering pausing all tariffs except on China. Markets surged before the White House dismissed the claim as “fake news.”China remains one of the largest U.S. trading partners, especially in consumer goods. Tariffs, which are effectively taxes on imports paid by American companies, are likely to result in higher prices for U.S. consumers.Federal Reserve Chair Jerome Powell on Friday warned that these tariffs might fuel inflation. “There’s a lot of waiting and seeing going on, including by us,” he said, noting no immediate decisions would be taken.European Commission President Ursula von der Leyen responded by saying the EU would seek trade opportunities with other nations beyond the U.S., pointing out there are “vast opportunities” elsewhere.In 2024, U.S. trade in goods with China totalled an estimated $582 billion, making China the top trading partner. The U.S. trade deficit in goods and services with China that year ranged between $263 billion and $295 billion.