China Rejects U.S. Tariff Threats, Vowing to Fight Back

The trade conflict ignited by President Donald Trump’s sweeping tariffs continues to escalate, China has firmly rejected U.S. threats, labeling them as “blackmail.” The situation has led to instability in global stock markets, despite a slight recovery observed on Tuesday.

China’s Ministry of Commerce has asserted that the U.S.’s intention to increase tariffs on imports from China to over 100% is a significant miscalculation, further exposing the country’s coercive tactics. They emphasized, “If the U.S. insists on having its way, China will fight to the end.”

Manufacturers across various sectors, from tableware to flooring, are feeling the pressure. Many are re-evaluating their profit margins, considering new overseas production facilities, and negotiating pricing with customers in response to the tariff implications.

The European Union has proposed counter-tariffs of 25% on a selection of U.S. goods, including soybeans and nuts, while considering negotiations for a “zero for zero” tariff agreement. The EU is grappling with existing tariffs on automobiles and metals and is preparing for additional duties on other products.

After several tumultuous trading days, global stock markets showed signs of stabilization. European shares rebounded from 14-month lows, Japan’s Nikkei index surged 6%, and Chinese blue chips made a modest recovery. However, Indonesia’s market experienced a sharp decline, with stocks plummeting 9% and the currency hitting a record low.

Trump maintains that tariffs, starting at a minimum of 10% for all imports and potentially reaching up to 50%, are essential for restoring the U.S. industrial base, which he claims has deteriorated due to excessive trade liberalization. However, analysts and business leaders are expressing concern over the long-term economic repercussions of these policies.

Amidst the uncertainty, U.S. Treasury Secretary Scott Bessent has advised Trump to prioritize trade agreements with allies to provide clarity and reassurance to the markets. Several nations have reached out to the U.S. in hopes of avoiding the impending tariffs, indicating a desire for diplomatic resolutions.

Business leaders, including JPMorgan Chase CEO Jamie Dimon, warn of potential lasting negative impacts from the tariffs. Meanwhile, Elon Musk advocates for zero tariffs between the U.S. and Europe, urging a reversal of the current tariff strategy. In contrast, Trump’s trade adviser has downplayed Musk’s suggestions.