Tensions between the United States and China escalated dramatically this week, as Beijing issued a bold warning in response to President Donald Trump’s latest tariff threats.
On Tuesday, Chinese officials declared they would “fight to the end” if the U.S. follows through on plans to impose an additional 50 percent tariff on Chinese goods — a move that risks pushing the global economy closer to the brink.
Trump, unfazed by the deepening turmoil in financial markets, remains steadfast in his hardline trade policy. Speaking from the White House, he expressed admiration for China but insisted their trade practices must change. “We are going to have one shot at this,” he said, underscoring his commitment to the strategy despite mounting global unease.
In a swift and firm response, China announced a new wave of tariffs, slapping a 34 percent duty on a wide range of U.S. imports set to take effect on Thursday. Officials in Beijing dismissed the U.S. moves as blatant “blackmail,” and vowed to take further action if Washington escalates the dispute.
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A spokesperson for China’s commerce ministry emphasized that while China seeks dialogue and peaceful resolution, it would not hesitate to take strong countermeasures to defend its economic interests.
Global markets have reacted sharply to the spiraling trade war. On Monday, Hong Kong’s Hang Seng Index suffered its steepest single-day decline since the Asian Financial Crisis, plunging more than 13 percent before recovering slightly on Tuesday.
On Wall Street, major U.S. indices closed lower after a volatile trading session, reflecting investor uncertainty. In Southeast Asia, stocks in Thailand, Indonesia, and Vietnam opened deep in the red, while Singapore’s Prime Minister Lawrence Wong publicly criticized the U.S. move, calling it disappointing and unbefitting of a close ally.
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The market instability prompted China’s central bank to step in with a rare public statement, aimed at calming investor nerves. It pledged support for domestic markets by backing a sovereign wealth fund that is actively purchasing exchange-traded funds to inject liquidity and stabilize sentiment.
Amid the escalating rhetoric, the prospect of talks seems distant. President Trump has cancelled upcoming meetings with Chinese officials over tariffs, signaling no immediate interest in diplomacy.
However, U.S. Treasury Secretary Scott Bessent offered a slight shift in tone during a televised interview, where he mentioned that Japan would be given priority in negotiations due to its early willingness to engage. This development sparked a brief rally in Tokyo stocks, as investors hoped for a more measured approach to trade policy.
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The latest round of tariffs builds on a 10 percent baseline duty already in effect for U.S. imports from a broad range of countries. But that baseline will be quickly overshadowed by the higher levies set to hit this week, with Chinese goods facing 34 percent duties and European products not far behind at 20 percent.
President Trump has also warned of more to come, suggesting the total levy on Chinese imports could climb as high as 104 percent if Beijing continues to retaliate.
Despite the hardening positions, both sides have indicated — however faintly — a desire for dialogue. China continues to reiterate that no one truly wins in a trade war, and there is hope that cooler heads may eventually prevail. For now, though, the standoff appears locked in, with businesses, consumers, and markets left to navigate the fallout.
The world is watching closely, hoping for a breakthrough that could ease tensions and restore confidence in global trade. Until then, uncertainty reigns, and the stakes — both economic and political — continue to rise.
AFP
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