ChinaHitBeijing strikes back after Trump unleashes 104% duties on Chinese goods

 

In a dramatic escalation of trade tensions, China said it will increase tariffs on a wide array of American products to 84 percent, beginning Thursday. The retaliatory action comes hours after US President Donald Trump’s record 104 percent tariff on Chinese imports went into effect, marking the direst phase yet in the escalating US-China trade confrontation.

The swift tit-for-tat back-and-forth has spurred fears of all-out trade war, with markets and economists saying global supply chains, financial markets, and world growth are in the direct danger zone. No one in either Washington or Beijing seems to want to blink now, and tensions on both sides are escalating their aggressive rhetoric.

 

China: ‘We Will Not Tolerate Bullying’

 

China’s Finance Ministry confirmed the tariff increase on Wednesday, vowing ‘resolute and forceful’ action to protect the nation’s economic sovereignty. In a daily press briefing, Chinese Foreign Ministry spokesman Lin Jian denounced the US tariffs as coercive and irresponsible.

China will never allow any behaviour that seeks to harm our sovereignty, security, or interests of development,” Lin stated. “The US is misusing tariffs as an intimidation tool. These hegemonic and bullying actions will not be left without response.”

 

Global Trade Stability at Risk, China Warns WTO

 

In Geneva, China expressed its displeasure in front of the World Trade Organization, terming Trump’s action a perilous breach of international trade norms. “The situation has dangerously escalated,” Beijing stated in a written release. “Reciprocal tariffs will not cure imbalances, they will only harm the US economy and global confidence.”

China had already retaliated against Trump’s 34 percent tariff, only to have the US increase it by 50 percent. Add to these earlier actions in February and March, and the total now amounts to 104 percent, resulting in concerns of near-embargo levels.

 

Markets Surge, But China Left Out

 

Even with the growing tensions, Wall Street rebounded on Wednesday following Trump’s suspension of tariffs on a number of nations for 90 days. Importantly, the moratorium did not extend to China. Rather, Trump implied yet another increase, to 125 percent, following Beijing’s new retaliatory measure.

The Dow rose by 2,169 points, the Nasdaq rose by over 8 percent, while the S&P 500 rose by over 6 percent, indicating short-term investor optimism, although uncertainty hangs in the air.

 

China Publishes White Paper, Claims Dialogue Is Still Possible

 

China also published a White Paper through the state news agency Xinhua, stating that while it’s natural to have differences with America, Beijing is still willing to have constructive dialogue. Nevertheless, it pledged to employ ‘appropriate countermeasures’ in case it was goaded further.

While the world looks on anxiously, Washington’s standoff with Beijing has yet to run its course. As tariffs rage and diplomacy fails, the global economy may well experience the impact of a trade war with no off-ramp anywhere in sight.