On Tuesday, China asserted its commitment to “fight to the end” in response to US President Donald Trump’s threats of increased tariffs, which have already destabilized global markets. Despite the turmoil caused by Trump’s aggressive trade policies, which have raised concerns about a potential international recession, he dismissed any pause in his tariff strategy.
In retaliation, China announced it would impose a 34 percent duty on US goods starting Thursday, escalating the economic tensions between the two nations. Following this announcement, Trump warned that if China continued to resist, he would implement a staggering 50 percent tariff, potentially increasing total duties on Chinese goods to 104 percent.
Trump expressed his respect for China but insisted that their actions were unacceptable, emphasizing the importance of a decisive resolution. In response, Chinese officials condemned the US approach as “blackmail” and threatened to implement their own countermeasures if further tariffs were imposed, reiterating their determination to fight back against US measures.
Tensions between Beijing and Washington escalated as China’s foreign ministry criticized US Vice President JD Vance for his “ignorant and impolite” comments about borrowing from “Chinese peasants.” The ministry emphasized that “pressure, threats, and blackmail” are ineffective in dealing with China.
Meanwhile, the European Union (EU) sought to ease tensions. EU chief Ursula von der Leyen spoke with Chinese Premier Li Qiang, stressing the “vital importance of stability” for the global economy and advocating for a negotiated solution to avoid escalation. The EU is preparing to respond to Trump’s recent 20 percent tariffs, with discussions about targeting US tech companies. They also proposed tariff exemptions on industrial products, but Trump dismissed these efforts as insufficient.
In retaliation for US tariffs on steel and aluminum, the EU plans to implement tariffs of up to 25 percent on various US goods, though US bourbon was spared after threats of retaliatory duties on European alcoholic drinks.
Amidst the turmoil, global markets showed signs of recovery after recent declines. Trump’s tariffs have significantly impacted markets, wiping trillions off stock values, though he remains steadfast in his belief that they will revive US manufacturing by encouraging companies to relocate to America. Most economists, however, view these tariffs as problematic and arbitrary. Despite market fluctuations, Trump has indicated he will not pause tariff implementations.
Trump canceled all meetings with China but expressed willingness to engage in talks with any other country open to negotiation. According to the White House, over 50 nations have reached out to the US leader.
During a meeting with Israeli Prime Minister Benjamin Netanyahu, who was the first leader to personally advocate for Trump regarding the tariffs, Trump stated, “There can be permanent tariffs, and there can also be negotiations, because there are things that we need beyond tariffs.”