China Threatens Countermeasures as Trump’s Tariffs Escalate Trade Tensions
Beijing, April 3, 2025 – China has vowed to retaliate with “all necessary countermeasures” against the United States following President Donald Trump’s imposition of sweeping new tariffs on Chinese imports, intensifying a trade war that threatens to upend global markets. The latest escalation, announced Tuesday, April 1, includes a 10% baseline tariff on all U.S. imports and a targeted 34% “reciprocal” duty on Chinese goods—on top of an existing 20% levy—pushing the total effective rate on Chinese exports to 54%. Beijing’s sharp response signals a readiness to “fight to the end,” as trade tensions between the world’s two largest economies reach a boiling point.
A Tariff Blitz Sparks Fury
Trump’s executive order, signed April 2 in the White House Rose Garden, frames the tariffs as a “Liberation Day” for American workers, aiming to rebalance trade deficits and curb fentanyl flows—an accusation China dismisses as “shifting blame.” The measures, effective immediately, hit $450 billion in Chinese exports, dwarfing Beijing’s $29 billion in U.S. agricultural imports last year. China’s Commerce Ministry blasted the move as “typical unilateral bullying,” pledging to safeguard its “legitimate rights and interests” with unspecified actions set to begin April 10.
Foreign Ministry spokesperson Lin Jian upped the ante, declaring at a Thursday briefing, “If the U.S. insists on a tariff war, trade war, or any other war, China will fight to the end.” State media, including Global Times, reported Beijing is mulling a 15% tariff hike on U.S. farm goods like soybeans and pork—echoing 2018’s tit-for-tat playbook—plus export curbs on rare earth metals vital to tech supply chains. An antitrust probe into Google, launched last week, and sanctions on 25 U.S. firms underscore China’s multi-pronged counterstrategy.
A Global Trade Quagmire
The escalation follows months of mounting friction. Trump’s February 4 tariffs (10% on China) and March 4 increase (another 10%) drew measured Chinese responses—15% duties on $20 billion in U.S. goods like LNG and corn—but this week’s 34% jump has shifted Beijing’s tone from restraint to resolve. “Exerting extreme pressure on China is a miscalculation,” Lin Jian said, urging the U.S. to “put away its bullying face” and return to dialogue. Posts on X reflect China’s defiance: “Trump’s tariffs won’t break us—they’ll just make us stronger,” one user wrote.
The fallout is already global. Stock markets in Beijing and Tokyo sank to multi-month lows Wednesday, per Reuters, though some losses eased Thursday. The EU, facing a 20% U.S. tariff, is finalizing $28 billion in countermeasures, while Canada and Mexico—hit with 25% duties—plan retaliatory levies by mid-April. “Uncertainty will spiral,” EU chief Ursula von der Leyen warned, as allies and rivals alike brace for economic chaos.
China’s Playbook: Fight and Diversify
Analysts see China pivoting inward and outward. ASAP Agri notes Beijing’s focus on boosting domestic consumption and AI development, reducing reliance on U.S. markets—a shift hastened since Trump’s first-term tariffs slashed U.S. farm imports from $42.8 billion in 2022 to $29.25 billion in 2024. “China’s using this to persuade others to prioritize its 1.4 billion-person market,” one X post observed, pointing to potential gains in Asia and Africa.
Yet, risks loom. Trade tension could stall China’s post-Covid recovery, already fragile with exports driving growth. A Tax Foundation model predicts U.S. tariffs could shrink American GDP by 0.4%—before retaliation—while China’s countermeasures might hike U.S. consumer prices, especially if farm exports falter. “There are no winners in a tariff war,” Foreign Ministry spokesperson Guo Jiakun said, a sentiment drowned out by escalating rhetoric.
A Superpower Standoff
As Trump doubles down—threatening 60% tariffs from his campaign trail—China signals it won’t bend. The embassy in Washington reposted Lin’s “fight to the end” vow on X, hinting at broader implications beyond trade. With Trump declining a call with Xi Jinping and allies like Japan (24% tariff) and South Korea (25%) caught in the crossfire, the U.S.’s “reciprocal” gambit risks isolating it while strengthening China’s hand with wavering partners.
For now, Beijing prepares its counterpunch—due next week—leaving markets jittery and the world watching. As Trump’s tariff blitz unites foes and strains friends, China’s resolve ensures this trade war is far from over, with consequences set to reverberate far beyond the Pacific.
