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American Focus > Blog > Economy > China vows ‘fight to the end’ after Trump threatens extra 50% tariff
Economy

China vows ‘fight to the end’ after Trump threatens extra 50% tariff

Last updated: April 7, 2025 7:26 pm
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China vows ‘fight to the end’ after Trump threatens extra 50% tariff
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Recently, tensions between the US and China have escalated over threatened tariff increases. China has vowed to “fight to the end” if the US proceeds with levying additional tariffs on Chinese goods. The commerce ministry in China has stated that they will retaliate further to safeguard their own rights and interests.

The prospect of increased tariffs has raised concerns about a potential decoupling of the world’s two largest economies. President Donald Trump’s recent tariff announcements have already caused market disruptions and could significantly impact Chinese exporters. In response, Beijing has taken measures to support its stock markets, including state-led funds buying stocks.

The S&P 500 experienced fluctuations in response to the tariff threats, shedding trillions of dollars since the announcement of universal tariffs. This has led to fears of inflation, slower economic growth, and a possible recession.

China has announced retaliatory tariffs on US imports, with President Trump threatening to impose even higher tariffs on Chinese goods. The escalating trade war has been characterized as a coercive move by the US, which China has vowed to resist.

In a strategic move, China has adjusted the exchange rate of its currency, the renminbi, to offset the impact of potential tariffs. Chinese markets experienced a rebound after initial losses, with the Hang Seng and CSI 300 indices showing positive gains.

See also  NEW: Fiscal Year 2025 Duty Collections Top $100 BILLION for First Time in History - June Sees $27 Billion in Tariff Revenue |

To stabilize the market further, Chinese financial regulators and state fund managers have pledged support for the stock market. Central Huijin, a unit of China’s sovereign wealth fund, has assured ample liquidity and funding channels to act as a market stabilizer. Additionally, the People’s Bank of China has indicated its readiness to support liquidity through refinancing tools.

In a separate initiative, China’s National Financial Regulatory Administration has announced plans to increase the proportion of insurance funds invested in the stock market. These measures aim to bolster the Chinese economy amidst escalating trade tensions with the US.

Stay informed about these developments and more by signing up for the White House Watch newsletter. With insights into the 2024 US election and its global implications, this newsletter is your go-to source for comprehensive coverage of political events shaping the world. Unlock the newsletter for free today and stay ahead of the curve.

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