China vowed to "fight to the end" after Trump threatened additional 50% tariffs
Kyiv • UNN
China has vowed to take countermeasures and "fight to the end" if the US imposes additional 50% tariffs on Chinese imports. Beijing is ready to devalue the yuan to offset US tariff pressure.
China has vowed to "fight to the end" in response to the US threat to impose additional 50% tariffs on Chinese imports. Beijing and Washington are exchanging warnings about additional trade measures amid the recovery of markets in Asia, despite the fact that the world's two largest economies have begun a threatening duel. This is reported by the Financial Times, writes UNN.
Details
China's Ministry of Commerce said on Tuesday that it would take retaliatory measures if US President Donald Trump carries out his threat to impose additional 50% tariffs on Chinese goods.
"If the US continues to implement these enhanced tariff measures, China will resolutely resort to countermeasures to protect its own rights and interests. If the US continues in the same style, China will fight to the end," a Chinese Ministry of Commerce representative said on Tuesday.
"If the US disregards the interests of both countries and the international community and insists on starting a customs or trade war, China will fight to the end," Global Times also quoted Chinese Foreign Ministry spokesman Lin Jian as saying on Tuesday, answering a question about US President Donald Trump's threat to impose an additional 50% tariff on China if China does not stop its countermeasures.
Trump's latest tariff plans have shaken global markets. The S&P 500 lost more than $5 trillion after the White House shocked US trading partners with universal import tariffs and "reciprocal" tariffs. Economists have warned of rising inflation and slowing economic growth and the risk of outright recession. The index closed down 0.2 percent after sharp fluctuations and a rebound in Asian markets in early trading.
Beijing has said it will impose 34% tariffs on imports from the US after US tariffs on Chinese goods take effect. And ahead of that, Trump threatened to impose an additional 50% tariff on Chinese goods, which, according to some estimates, would bring US tariffs on Chinese imports to more than 120%.
"The US threat to further raise tariffs is a mistake that has added to the list of other mistakes. And it once again shows the coercive nature of the actions taken by the US. China will never agree to this," the ministry spokesman said.
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Beijing backed up the threat of retaliation by correcting the yuan's exchange rate, setting its currency at 7.20 yuan per dollar, demonstrating that it could use devaluation to offset US tariff pressure. This is the lowest exchange rate since September 2023.
During Trump's first presidential term, Beijing devalued its currency to offset the impact of tariffs. On Tuesday morning, the offshore yuan, which trades freely, fell below 7.35 yuan per dollar for the first time since February.
"I don't think Beijing will back down. This may be a case of competing to see who blinks first. Now this confrontation is more like a test of endurance. They are measuring who will hit whom harder and who will be forced to come to the table with a weakened negotiating position," commented Lynn Song, chief economist at ING.
Chinese markets rose on Tuesday after a prolonged fall on Monday. Hong Kong's Hang Seng index jumped 3%, led by Chinese companies listed in the territory, while the mainland's CSI 300 index rose 0.3 percent.
China's financial regulators and state fund managers spoke out on Tuesday, pledging to support the country's stock market. Several Chinese companies have also announced share buybacks.
Let us remind you
Nearly 70 countries have appealed to the US on trade amid Donald Trump's new tariffs, according to US Treasury Secretary Scott Bessent.
