New Delhi: On Monday, US President Donald Trump issued a stark warning to China, proposing an additional tariff of 50 percent on top of the recently announced 34 percent levy on Chinese imports. In retaliation, China asserted that it would not be cowed by what it termed “tariff blackmail,” claiming that the US tariffs were imposed without justifiable reasons.
Trump has given China a one-day ultimatum to retract its announcement of the 34 percent reciprocal tariffs on US goods, stating that the new 50 percent tariff would take effect on April 9 if the deadline is not adhered to.
In response to Trump’s ultimatum, China declared its intention to implement resolute countermeasures to protect its rights and interests. The Chinese Ministry of Commerce characterized the US’s threat to escalate tariffs as a compounded error, further revealing the US’s tendency towards coercion.
The ministry stated, “Should the US persist in its approach, China will fight to the end.”
This escalation occurred against the backdrop of a significant downturn in global stock markets following Trump’s tariff announcements affecting various nations.
Trump took to TruthSocial to assert that China had imposed an additional 34 percent tariff on top of existing high tariffs. He accused China of engaging in unfair trade practices, including illegal subsidies and currency manipulation. He also warned that if any country retaliated against the US with new tariffs, he would respond with even higher tariffs.
He underscored the implications of China’s actions, stating, “Furthermore, all discussions with China regarding their requests for meetings will be terminated! Negotiations with other nations that have also sought meetings will commence immediately.”
In response to Trump’s recent announcement, the Chinese state-run publication, Global Times, criticized the US government’s new tariff increases on its global trade partners, labeling them as an abuse of authority and a form of economic coercion masquerading as “reciprocity.” The publication argued that this action contravenes international trade regulations and undermines global economic stability, asserting that China will implement strong countermeasures to safeguard its sovereignty and promote fairness.
On April 2, Donald Trump declared “discounted” reciprocal tariffs on trading partners, including a 26 percent tariff on imports from India.
Conversely, China faced a 34 percent tariff imposed by the Republican president. In retaliation, the Chinese Ministry of Finance announced it would impose an additional 34 percent tariff on all US goods starting April 10.
Additionally, the Chinese ministry revealed that it would enforce export controls on medium and heavy rare-earth elements, such as samarium, gadolinium, terbium, dysprosium, lutetium, scandium, and yttrium, effective April 4.
Since the onset of the US-China trade conflict, US stock markets have experienced significant declines. The S&P 500 has fallen by 20% from its peak closing level in February.
The Dow Jones Industrial Average has also decreased, now sitting over 17% below its all-time high. Meanwhile, the Nasdaq had already entered bear market territory the previous week, as fears of a potential recession, exacerbated by the extensive tariffs imposed by President Trump, unsettled global markets.
Chinese stocks have mirrored this downward trend. The Hang Seng Tech Index plummeted by 27% within a month, nearing the level it held at the beginning of the year prior to the DeepSeek-inspired rally.
The yuan has depreciated to its lowest point since January, while bonds have seen a significant rally.
