China says it will take action after Trump threatens to impose 50% more tariffs

In a statement, the Commerce Ministry said the US imposition of “so-called ‘reciprocal tariffs’” on China is “completely groundless and is a typical practice of unilateral ‘bullying’”.

China has taken retaliatory measures and the ministry has hinted that more are to come.

“The countermeasures taken by China are aimed at safeguarding its sovereignty, security and development interests and maintaining the normal order of international trade. They are completely legitimate,” the statement read.

“The US threat to raise tariffs on China is a mistake on top of a mistake and once again exposes the blackmailing nature of the US. China will never accept this. If the US insists on this path, China will fight to the end,” he said.

Trump threatened to impose additional tariffs on goods from China on Monday, raising fresh concerns that his effort to reshape global trade could escalate a financially destructive trade war. Stock markets from Tokyo to New York have plunged in recent days.

Trump's threat came after China said it would retaliate against US tariffs.

“If China does not withdraw its 34% increase on top of its longstanding trade abuses by tomorrow, April 8, 2025, the United States will impose ADDITIONAL Tariffs on China of 50%, effective April 9th,” Trump wrote on Truth Social.

“Furthermore, all talks with China regarding the meetings they requested with us will be terminated!” he said.

If Trump follows through on his threat, U.S. tariffs on Chinese goods would reach a total of 104%. The new duties would be in addition to the 20% tariffs announced as punishment for fentanyl trafficking and the separate 34% tariffs announced last week.

Not only could this move raise prices for American consumers, it could also encourage China to flood other countries with cheaper goods and seek deeper relationships with other trading partners, notably the European Union.

During his first term, Trump frequently boasted about his stock market gains, and the threat of Wall Street losses was seen as a potential barrier to risky economic policies in his second term. But that is not the case, and Trump has described the recent financial losses as necessary.

“I don’t mind going through this because I see a beautiful picture at the end,” he said.

Trump officials have appeared frequently on television to defend his policies, but none of their explanations have calmed markets.

China is one of the US's biggest trading partners, especially when it comes to consumer goods, and the tariffs will eventually be passed on to the consumer.

Federal Reserve Chairman Jerome Powell warned Friday that rates could fuel inflation and said there was “a lot of waiting and seeing, including for us,” before any decisions were made.

European Commission President Ursula von der Leyen said the European Union would focus on trade with countries other than the United States, saying there were “vast opportunities” elsewhere.

Inforpress/Lusa