China Vows Strong Retaliation Against U.S. Tariffs
On March 4, 2025, during a press briefing, Lin Jian, spokesperson for the Chinese Foreign Ministry, asserted that China would adopt “resolute and forceful” measures in response to hefty tariffs imposed by the United States. This statement came shortly after the implementation of a net total of 104% tariffs on Chinese imports.
Call for Dialogue and Respect
Lin emphasized that for any resolution to be achieved, the United States must engage in discussions with respect and equality. “If the U.S. genuinely wants to resolve the problem through dialogue and negotiation, it should show an attitude of equality, respect and mutual benefit,” he stated, reinforcing a sentiment echoed by China’s Commerce Ministry earlier in the week.
Escalation of Tariffs
The increasing tensions can be linked to recent economic measures, including the new 34% tariffs that China announced on U.S. goods, set to take effect on April 10. This decision acts as a countermeasure to President Trump’s additional tariffs aimed at Chinese imports, which also stand at 34%.
Impact on Trade
In earlier assessments, Dan Wang, the China director at the Eurasia Group, indicated that such high tariffs could severely impact Chinese exporters, suggesting that once U.S. import duties exceed the 35% threshold, many would cease selling to U.S. markets altogether.
Official Stance from Chinese Authorities
A white paper released by the State Council Information Office provided a broader context, stating that if the U.S. continues to escalate its economic restrictions, China will respond decisively. “The U.S. uses tariffs as a weapon to exert extreme pressure and seek selfish interests. This is a typical act of unilateralism, protectionism, and economic bullying,” the report argued.
Consequences of Tariff Increases
Chinese officials warned that elevated tariffs would not only fail to address U.S. trade surplus challenges but could also lead to increased financial market instability, inflationary pressures, and harm American industries.
A Call for Collaboration
Despite the escalating conflict, Chinese authorities hope for a path to resolution, encouraging the U.S. to “meet halfway” by eliminating unilateral trade barriers. They remain open to enhancing dialogue, managing differences, and strengthening collaboration between the two nations.
Phase 1 Trade Deal Controversies
China contends that it has adhered to the conditions established in the “Phase 1” trade agreement initiated during President Trump’s administration, while asserting that the U.S. has not met certain obligations within the deal. This trade agreement had aimed for China to increase its purchases of U.S. goods by $200 billion over two years, a target complicated by the disruptions caused by the Covid-19 pandemic.
As the trade war evolves, the implications for both nations and global markets remain uncertain, with ongoing dialogue seen as crucial in addressing these challenges.