China pledges to ‘fight to the end’ as Trump intensifies trade war with fresh tariff threats

BEIJING, April 8 — China today pledged to “fight to the end” in response to new 50 percent tariffs threatened by US President Donald Trump, escalating a trade war that has already erased trillions from global markets.

Trump’s sweeping tariff announcements last week rattled the world economy, heightening fears of a global recession. Despite sharp market declines, the US president remains firm on his hardline trade stance.

In retaliation, Beijing announced 34 percent duties on US imports, effective Thursday, marking a new flashpoint between the world’s two largest economies.

Trump warned of even steeper levies—potentially raising the total tariffs on Chinese goods to 104 percent—if Beijing continued to resist Washington’s demands. “I have great respect for China, but they can’t do this,” Trump said at the White House. “This is our one shot. It’s an honour to take it.”

China fired back, condemning the US for “blackmail” and vowing to stand its ground. “If the US insists on going its own way, China will fight to the end,” said a spokesperson from the Ministry of Commerce. “This once again exposes the bullying nature of the United States.”

The ministry emphasized its preference for dialogue but said China would take firm countermeasures to protect its interests. “There are no winners in a trade war,” it warned.

Market chaos

Trump’s tariff threats have sparked severe market turbulence. Hong Kong’s Hang Seng Index plunged 13.2 percent on Monday—its worst drop since the Asian financial crisis—before recovering slightly Tuesday morning.

US markets also tumbled, with the Dow Jones and S&P 500 ending Monday in the red. Global equities have lost trillions in value in recent days.

Despite the market panic, Trump reiterated on Monday that there would be “no pause” in implementing tariffs. He also canceled further tariff talks with China but said the US remained open to negotiations with other nations.

In an effort to stabilize markets, China’s central bank issued a rare statement Tuesday pledging support for a sovereign wealth fund buying exchange-traded funds (ETFs) to calm investor fears after Shanghai’s markets plunged.

Meanwhile, Tokyo’s stocks rallied after US Treasury Secretary Scott Bessent said Japan could be given priority in trade negotiations due to its quick willingness to engage.

A new 10 percent “baseline” tariff on US imports globally took effect Saturday. Starting Wednesday, increased duties—34 percent on Chinese goods and 20 percent on EU products—will kick in.

Bessent said numerous countries are seeking talks, and through negotiations, tariff levels could eventually decline.

Meeting with Israeli Prime Minister Benjamin Netanyahu—who personally appealed for tariff relief—Trump said, “There can be permanent tariffs, or there can be negotiations, because we need more than just tariffs.”

EU response and economic fears

European Union trade ministers gathered in Luxembourg Monday to discuss their response. France and Germany are pushing for a digital tax targeting major US tech firms. French Trade Minister Laurent Saint-Martin urged the EU to use its “comprehensive and potentially aggressive” trade toolkit.

As markets reeled, Trump urged Americans to remain firm, tweeting: “Don’t be Weak! Don’t be Stupid!”

Trump argues that tariffs will rejuvenate US manufacturing by pressuring foreign firms to produce within the country. However, most economists challenge that view, calling the policy arbitrary and potentially harmful.

JPMorgan Chase CEO Jamie Dimon warned that inflation was likely, and while it’s unclear whether the tariffs would trigger a recession, he said they would definitely slow economic growth.

Even Republican allies voiced concern. Senator Ted Cruz warned of job losses and higher consumer prices, saying a recession could spell disaster for Republicans in next year’s midterm elections. — AFP