Beijing, Monday — China has vowed not to yield to pressure or threats, responding firmly to U.S. President Donald Trump’s latest warning of imposing an additional 50 percent tariff on Chinese goods if Beijing proceeds with its planned countermeasures.
“We have stressed more than once that pressuring or threatening China is not the right way to engage with us. China will firmly safeguard its legitimate rights and interests,” said Liu Pengyu, spokesperson for China’s embassy in Washington, in a statement to AFP.
President Trump’s remarks came as part of his aggressive new global trade stance, which has already rattled markets worldwide. On Monday, he reiterated that no pause in tariff hikes was being considered, despite last week’s sharp market sell-off and mounting international concern.
Trade War Escalates
Last week, Trump introduced sweeping tariffs that jolted global markets, sparking fears of a looming international recession. Despite criticism from within his own Republican Party, the president appears determined to press forward.
Beijing, for its part, announced retaliatory tariffs of 34 percent on U.S. imports, set to take effect Thursday. In response, Trump issued a stark ultimatum: if China does not immediately withdraw its countermeasures, the U.S. will raise tariffs by an additional 50 percent starting Friday.
“I have great respect for China, but they cannot do this,” Trump stated from the White House. “We are going to have one shot at this… and it’s an honor to do it.”
According to the White House, the new measures could bring the total cumulative tariff rate on Chinese imports to 104 percent this year.
Markets in Turmoil
Global markets responded with sharp declines. Hong Kong’s Hang Seng Index plummeted 13.2 percent — its worst performance in nearly 30 years. Tokyo’s Nikkei dropped nearly 8 percent, while Frankfurt’s DAX fell by as much as 10 percent before trimming losses. In the U.S., both the Dow Jones and S&P 500 closed lower after a volatile session.
The sell-off wiped trillions off global market valuations, with analysts warning of increased volatility in the days ahead.
Global Fallout and EU Response
Trump doubled down on Monday, canceling planned talks with Beijing and stating he was “not looking” at any delay in implementing tariffs. Still, he left the door open for future negotiations, saying the U.S. was “ready to talk with any country willing to negotiate.”
European Union trade ministers met in Luxembourg to assess the bloc’s response, with France and Germany pushing for countermeasures — including digital taxes on American tech giants. French Trade Minister Laurent Saint-Martin called for a robust response, stating, “The European toolbox is comprehensive and can be extremely aggressive.”
However, not all EU members are aligned. Ireland voiced concerns about escalating the conflict to the services sector, warning that such a move could trigger further instability.
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Economic Fears Mount
Trump’s economic message remains defiant. Posting on social media ahead of Wall Street’s opening bell, he urged Americans to “Be strong, courageous, and patient — and GREATNESS will be the result!”
He believes the tariffs will drive manufacturing back to the U.S., but economists remain skeptical. JPMorgan Chase CEO Jamie Dimon cautioned that inflation could rise and that while a recession isn’t certain, economic growth will likely slow. Even Trump allies like Senator Ted Cruz have raised concerns about the impact on American families and consumers.
As the standoff deepens, the world watches closely — with markets, businesses, and households bracing for the potential consequences of a full-scale trade war between the world’s two largest economies.
