Beijing has retaliated against the United States’ newly imposed tariffs by matching the 34% levy and introducing additional countermeasures, including export restrictions on rare earth minerals and the suspension of certain agricultural imports from the US.
The move comes after US President Donald Trump announced a fresh round of tariffs targeting Chinese imports, following previous levies of 10% in February and March. Trump’s decision to increase tariffs was tied to allegations that China played a significant role in the fentanyl crisis, a claim that Beijing has vehemently denied.
In response, China’s Foreign Ministry accused the US of economic bullying and protectionism, condemning Washington’s “America First” approach. Spokesperson Lin Jian argued that the tariffs were damaging global production, disrupting supply chains, and hindering economic recovery.
“This unilateral action is harming the interests of both countries and the world,” Lin stated. He further called on American companies, including Tesla, to take “concrete actions” to help resolve the growing trade dispute. Lin emphasized that the US strategy was causing more harm than good and urged companies to push for dialogue rather than escalating tensions.
Following Trump’s tariff announcement, Asian stock markets plunged sharply. The benchmark Hang Seng Index in Hong Kong experienced a significant 13.22% drop on Monday, marking its worst decline in decades, with the index dipping as much as 13.74% during the trading day. The Shanghai Composite fell by over 8%, and Japan’s Nikkei closed down 7.8%.
Beijing wasted no time in responding to the new US tariffs. In addition to matching the 34% rate on select American goods, China introduced a variety of countermeasures. These measures included suspending imports of US agricultural products such as sorghum, poultry, and bone meal from specific companies, as well as placing new export controls on rare earth minerals, which are critical to many high-tech industries. China also filed a lawsuit with the World Trade Organization (WTO) in an attempt to challenge the tariffs on the international stage.
Despite the intense trade conflict, the Communist Party’s official newspaper, the People’s Daily, remained defiant, declaring, “The sky won’t fall.” The publication reiterated that China had the tools and strategies needed to withstand the US actions, and Lin Jian further asserted, “Pressure and threats are not the way to deal with China.”
Chinese officials have also engaged with representatives from major American companies such as Tesla and GE Healthcare. Vice Minister of Commerce Ling Ji told these companies that the root of the tariff issue lay with the US and called on American firms to take a stand for global supply chain stability. “We hope American companies can address the problem at its root, issue reasonable statements, and work together to safeguard the stability of the global supply chain,” Ling stated.
While tensions continue to rise, Lin did not comment on whether Chinese President Xi Jinping would meet with Trump to negotiate a resolution, leaving the path to de-escalation uncertain. However, Ling reiterated that China remained open to foreign investment and assured that doing business in China was still a safe and viable option.
As the trade war intensifies, the global economy braces for further volatility.
