China pledged on Tuesday to “fight to the end” in response to U.S. President Donald Trump’s latest threat to impose 50% tariffs on Chinese imports, intensifying an already volatile trade war that has rattled global markets.
Trump’s announcement last week of sweeping new tariffs sent shockwaves through the global economy, triggering fears of a looming international recession. Despite a dramatic sell-off in financial markets, Trump has remained steadfast in his hardline trade stance.
Beijing, Washington’s chief economic rival, retaliated swiftly, announcing its own 34% tariff on U.S. goods set to take effect Thursday. The tit-for-tat escalation pits the world’s two largest economies against each other in a deepening standoff.
In response to China’s countermeasures, Trump issued a fresh warning, vowing to raise the total tariff burden on Chinese products to a staggering 104% if Beijing continued to retaliate. “I have great respect for China, but they cannot do this,” Trump said during remarks at the White House. “We’re going to have one shot at this… and I’ll tell you what, it’s an honour to do it.”
China fired back, accusing the U.S. of “blackmail” and rejecting what it described as coercive tactics. “If the U.S. insists on going its own way, China will fight it to the end,” a spokesperson for China’s Ministry of Commerce said Tuesday. The spokesperson added that the latest threat “once again exposes the U.S.’s blackmailing nature.”
Beijing reiterated its readiness for dialogue but warned that any further escalation would be met with firm countermeasures. “There are no winners in a trade war,” the ministry emphasized, calling for negotiations but insisting on defending China’s economic interests.
Markets have responded with intense volatility. On Monday, Hong Kong’s Hang Seng Index plunged 13.2%—its worst single-day drop since the Asian financial crisis—before partially rebounding in early Tuesday trading. The turmoil underscores the high stakes of the ongoing trade conflict, with investors watching closely for any signs of de-escalation.
