China Responds to Trump's Threat of Additional 50% Tariffs

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2025-04-08 14:16

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The following is the latest news on Trump's threat of an additional 50% tariff and the latest developments in US-China trade relations:

Trump's Threat of an Additional 50% Tariff

On April 2, 2025, Trump announced the implementation of "reciprocal tariffs" on nearly 90 countries worldwide, with China subject to an additional 34% tariff. In response, China announced on April 5 that it would impose retaliatory tariffs of 34% on all US goods starting April 10.

Trump's Threat: On April 7, local time, Trump posted on his social media platform Truth Social that if China did not withdraw its 34% retaliatory tariffs on US goods by April 8, the US would impose an additional 50% tariff on Chinese goods starting April 9. He also announced that all bilateral talks requested by China would be immediately terminated, and negotiations with other countries that had requested meetings would be immediately initiated.

In response to Trump's threat of an additional 50% tariff, Liu Pengyu, spokesperson for the Chinese Embassy in the US, issued a statement on April 7, 2025, clearly expressing China's firm stance:

1. Opposition to Unilateralism and Economic Bullying

Liu Pengyu pointed out that the US, under the pretext of "reciprocity," is pursuing hegemonic behavior, sacrificing the legitimate interests of other countries to satisfy its own self-interest, placing "America First" above international rules. This behavior is typical unilateralism, protectionism, and economic bullying, seriously violating the rules of the World Trade Organization, undermining the rules-based multilateral trading system, and impacting the stability of the global economic order.

2. Emphasis on Ineffectiveness of Pressure

China has repeatedly stressed that pressure or threats are not the right way to deal with China. The US attempt to force China to concede through tariff threats is not only ineffective but will further damage Sino-US economic and trade relations.

3. Firmly Upholding Its Legitimate Rights and Interests

China will firmly uphold its legitimate rights and interests and will not succumb to external pressure. China has previously taken a series of countermeasures, including imposing tariffs on US imports and adding some US companies to the "unreliable entity list." These measures demonstrate China's determination in protecting its own interests.

4. Call for Return to Rational Dialogue

China has always advocated resolving trade disputes through dialogue and consultation, rather than through unilateral threats and sanctions. China hopes that the US will return to rationality and work with China to promote the stable development of Sino-US economic and trade relations.

5. Emphasis on Global Impact

The US tariff threats will not only affect the economies of China and the US but also have a negative impact on the global economy. China calls on the international community to jointly oppose unilateralism and protectionism and uphold the multilateral trading system.

China's response shows that in the face of US tariff threats, China will resolutely protect its own interests while calling on both sides to resolve issues through dialogue and maintain the stability and development of the global economy.

Latest Developments in US-China Trade Relations

• Trade negotiations stalled: Due to Trump's tariff threats, US-China trade negotiations are at an impasse. Trump stated that if China does not meet his demands, all discussions with China regarding its requests for meetings will be terminated.

• Global market reaction: Trump's tariff threats triggered sharp fluctuations in global financial markets. On April 7, the Hong Kong Hang Seng Index plummeted 13.2%, its biggest single-day drop since the 1997 Asian financial crisis; the Taiwan Weighted Index fell 9.7%, its worst performance ever; the Nikkei 225 index plunged 7.8%, and the Shanghai Composite Index fell 7.3%. The US domestic market was also not spared, with the S&P 500 index closing down 0.2% and the Dow Jones Industrial Average down 0.9%.

• Intensified international game: The EU announced that it will vote on April 9 on measures to counter US tariffs on steel and aluminum, planning to implement retaliatory tariffs in two phases. In addition, Vietnam, Thailand, and other countries, lacking leverage, tend to adjust their policies to meet US demands; Japan and South Korea are seeking tariff exemption negotiations.

Expert Interpretation and Impact

• Economic logic collapse: Trump pursues "trade balance" and pushes for the return of industrial chains while maintaining US dollar hegemony, which has been criticized as an "impossible triangle." If global US dollar liquidity shrinks, the US economy may fall into more serious inflation.

• China's strategic determination: China diversifies risks through "internal circulation" and "Belt and Road", accelerating the construction of a dual-circulation pattern. Russian scholars commented that China's counterattack is "rational self-protection", not blind confrontation.

• Impact on the chip industry: Although the amount of semiconductors China directly imported from the US in 2024 accounted for less than 4% of China's total import and export of semiconductors, integrated circuits have been ranked first in the amount of Chinese imports for many years, so changes in the trade environment will inevitably have an impact on China's semiconductor industry.

Keywords:

US-China trade,Imposing a 50% tariff

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