China has rejected what it calls the “blackmail” of the United States, vowing to “fight to the end” if Washington pushes ahead with steep new tariffs. Image: AP.
(The Post News)– As the trade battle between the two biggest economies in the world intensifies, China has vowed to “fight to the end” against fresh tariffs imposed by the United States. U.S. President Donald Trump has threatened to destabilise international markets by announcing plans to impose an additional 50% tariff on Chinese goods, intensifying the conflict.
Since their introduction last week, Trump’s tariffs have had a major effect. Global markets were rocked by the announcement, and key indices suffered enormous losses. On Monday, Hong Kong’s Hang Seng Index fell 13.2 percent, the most since the Asian financial crisis. U.S. markets also finished lower, with the Dow and S&P 500 both seeing sharp declines. The fear of a prolonged trade conflict has already wiped out trillions in market value.
Despite the market turmoil, Trump has remained steadfast in his position, reiterating that he is not considering any pause in the tariff hikes. “We are going to have one shot at this,” Trump said in a statement from the White House, emphasising his belief in the necessity of his trade measures.
China promptly responded by enacting its set of tariffs on American goods, which included a 34 per cent tax on specific American shipments. China’s Ministry of Commerce spokesperson called the U.S. strategy “blackmail”, saying Beijing would not tolerate such actions and that it would “fight to the end” if Washington persisted in this direction. “If the U.S. insists on going its own way, China will resolutely take countermeasures to safeguard its rights and interests,” the spokesperson said.
While the Trump administration has suggested that it is open to negotiations, it has ruled out any formal talks with China over the tariffs. Treasury Secretary Scott Bessent also stated that Japan would be a priority in negotiations, acknowledging the country’s quick engagement in discussions. As the effects of the trade dispute spread around the world, other countries, such as those in the European Union, are looking into responses, such as possible tariffs on American IT companies.
Concern over the economic effects of the intensifying trade war has grown among economists. JPMorgan Chase CEO Jamie Dimon has warned that the tariffs could lead to higher inflation, slowing economic growth. “Whether or not the menu of tariffs causes a recession remains in question, but it will slow down growth,” Dimon said in a recent interview. Some economists have also questioned the Trump administration’s plan to boost American manufacturing by enticing foreign firms to relocate to the United States, arguing that the tariffs are pointless and ineffectual.
U.S. Senator Ted Cruz has expressed concern about the possible harm to American workers, highlighting the fact that the effects of these trade restrictions are already being seen at home. Cruz, a strong Trump supporter, cautioned that the tariffs might result in price increases and job losses and that a recession might endanger the Republican Party’s chances in the next midterm elections.
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