The Commerce Department statement said that the United States imposed “so-called “mutual tariffs” on China “completely unfounded and a typical unilateral bullying.”
China has adopted retaliatory tariffs, and the ministry suggests more people are coming.
“The countermeasures China has taken are designed to safeguard its sovereignty, security and development interests and maintain a normal international trade order. They are completely legal,” the ministry said. “The U.S. threat to China’s escalation of tariffs is a mistake, it is a mistake, and once again exposes the nature of the United States’ blackmail. China will never accept this. If the U.S. sticks to its own way, it will do its best.”
Trump threatened additional tariffs on China on Monday, raising new concerns that his rebalancing of the global economy could exacerbate an economically destructive trade war. As the tariff war worsened, the stock market from Tokyo to New York became more volatile.
Trump’s threat occurred when China said it would retaliate against U.S. tariffs he announced last week.
“If China does not withdraw 34% of its already long-term transaction abuse by April 8, 2025, tomorrow, then the United States will impose an additional 50% tariff on China, starting from April 9,” Trump wrote in Truth Society. “In addition, all negotiations with China regarding their request to meet with us will be terminated!”
If Trump puts new tariffs on Chinese products, the U.S. tariffs on Chinese goods will reach 104%. The new tax will be the announced 20% tariff, a penalty for fentanyl trafficking, which he announced last week. Not only can it increase prices for American consumers, it can also provide China with the motivation to flood cheaper goods and seek deeper relationships with other trading partners, especially the EU.
Trump often boasted about the growth of the stock market during his first term, and Wall Street’s loss threat is seen as a potential guardrail for risky economic policies in the second semester. But that’s not the case, and Trump has described the days of economic distress as necessary.
“I don’t mind browsing it because I saw a beautiful photo at the end,” he said.
Trump officials often appear on TV for reasons to formulate their policies, but none of their explanations calmed the market. The only improvement comes from a false report that top economic adviser Kevin Hassett said Trump is considering all relevant tax pauses for China. Stock prices rose before the White House denied it, and that was the fact that it was called “fake news.”
China is one of the top trading partners in the United States, especially for consumer goods, where tariffs (essentially import taxes paid to U.S. companies) will eventually be transferred to consumers.
Fed Chairman Jerome Powell warned Friday that tariffs could increase inflation, saying “there is a lot waiting, including us, including us before any decision is made.”
European Commission President Ursula von der Leyen said the EU will focus on trade with other countries outside the United States, saying there are “huge opportunities” elsewhere.
