China has warned that the U.S.-initiated trade war will ultimately “end in failure,” as its newly imposed 84% tariffs on American goods came into force on Thursday. The statement came just hours after the U.S. president announced plans to raise tariffs on Chinese imports to 125%.
Beijing’s move marks a sharp escalation in the ongoing trade conflict between the two largest economies in the world. While the U.S. opted to pause its steepest tariffs on dozens of other countries—capping them at 10% for a 90-day period—China was excluded from this temporary reprieve due to its refusal to withdraw its retaliatory measures.
At a press briefing, a spokesperson for China’s foreign ministry emphasized that while Beijing does not seek conflict, it is unafraid to confront Washington’s tariff threats. “The United States lacks public support for its actions, and they are bound to fail,” the spokesperson said.
Meanwhile, China’s commerce ministry struck a more diplomatic tone, expressing hope that both nations could resolve their differences through dialogue, mutual respect, and cooperation.
Financial markets around the world rallied after the U.S. president’s announcement of the temporary tariff pause. Taiwan’s stock index jumped 9.2%, Japan’s Nikkei surged 7.2%, and South Korea’s Kospi rose over 5%. Gains were also seen in Australia, Hong Kong, and mainland China. In the U.S., the Dow climbed nearly 8%, while the Nasdaq soared 12.2%—its best performance in 24 years.
An editorial in a state-run Chinese newspaper stated that Beijing will not give in to pressure from Washington. The World Trade Organization’s chief warned that escalating tensions between the two nations could reduce bilateral trade in goods by 80%, potentially undermining the global economy.
As a consequence of the new tariffs, Chinese businesses selling on American e-commerce platforms were preparing to raise prices or exit the U.S. market entirely, according to the head of a major Chinese trade group.
Although the U.S. paused its sweeping global tariffs at 10%, it kept in place the elevated duties targeting China. In response, the European Union also announced a 90-day suspension of its planned retaliatory tariffs against the U.S., signaling an openness to negotiation.
During his remarks, the U.S. president explained the tariff pause by stating, “People were getting carried away; they needed to be calmed.” Despite the easing for other nations, he maintained a hardline stance on China, with new duties reaching 125%. China responded by adding 18 American firms to its trade restriction lists and implementing further countermeasures.
The president claimed China was open to negotiations but uncertain on how to proceed due to national pride. “They’ll figure it out,” he said, referring to Chinese leadership.
A separate editorial noted that while the high tariffs will hurt Chinese exports and investor confidence, conceding to U.S. demands would only encourage more aggressive trade tactics from Washington.
In the meantime, Beijing has ramped up outreach to other trading partners. China’s commerce minister held discussions with Malaysian and European counterparts to boost regional cooperation and resume negotiations on sectors such as electric vehicles.
However, China’s overtures to Australia were firmly rejected by its defense minister, who emphasized the country’s strategic alignment with the U.S. and its focus on diversifying trade ties.
Despite growing recession concerns in the U.S., the president downplayed market fluctuations, stating that “sometimes you have to take the medicine.”
Governments affected by U.S. tariffs welcomed the 90-day pause, though concerns remained over sector-specific duties. Japan called for a broader review of U.S. tariffs on steel, aluminum, and auto parts, while the EU was preparing retaliatory tariffs on $23 billion worth of American goods, including agricultural products from key Republican constituencies.
At a congressional hearing held concurrently with the president’s announcement, one lawmaker criticized the administration’s inconsistent trade policy, calling it “amateur hour.”
