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China said Tuesday it would fight to the end and take countermeasures against the United States to safeguard its own interests after President Donald Trump threatened an additional 50% tariff on Chinese imports. The Commerce Ministry said the U.S.s imposition of so-called reciprocal tariffs on China is completely groundless and is a typical unilateral bullying practice. China, the world’s second-largest economy, has announced retaliatory tariffs and the ministry hinted in its latest statement that more may be coming. The countermeasures China has taken are aimed at safeguarding its sovereignty, security and development interests, and maintaining the normal international trade order. They are completely legitimate, the ministry said. The U.S. threat to escalate tariffs on China is a mistake on top of a mistake and once again exposes the blackmailing nature of the U.S. China will never accept this. If the U.S. insists on its own way, China will fight to the end,” it added. Analysts and traders worry about a global trade war Trump’s threat Monday of additional tariffs on China raised fresh concerns that his drive to rebalance the global economy could intensify a financially destructive trade war. Stock markets from Tokyo to New York have become more unstable as the tariff war worsens. Trumps threat came after China said it would retaliate against U.S. tariffs he announced last week. If China does not withdraw its 34% increase above their already long term trading abuses by tomorrow, April 8th, 2025, the United States will impose ADDITIONAL Tariffs on China of 50%, effective April 9th, Trump wrote on Truth Social. Additionally, all talks with China concerning their requested meetings with us will be terminated! If Trump implements his new tariffs on Chinese products, U.S. tariffs on Chinese goods would reach a combined 104%. The new taxes would be on top of the 20% tariffs announced as punishment for fentanyl trafficking and his separate 34% tariffs announced last week. Not only could that increase prices for American consumers, it could also give China an incentive to flood other countries with cheaper goods and seek deeper relationships with other trading partners, particularly the European Union. Chinese people worry, but keep faith with their country On the streets of Beijing, people said they found it hard to keep track of all the announcements, but expressed belief in their country’s ability to weather the storm. “Trump says one thing today and another tomorrow. Anyway, he just wants benefits, so he can say whatever he wants,” said Wu Qi, 37, who works in construction. Others were less sanguine. Paul Wang, 30, who sells stainless accessories, including necklaces, bracelets, and tongue studs to Europe, said the European market was now more important after the extra U.S. 50% tariffs and he would be watching to see which other firms in his field would be competing in that space. Jessi Huang and Yang Aijia, whose companies import chemicals from the U.S., said the tariffs, including potential Chinese retribution, could force them to close up shop. It would be very hard and very likely to have a layoff, maybe even closing, Huang said, I might not be able to find another job if I get laid off. China isn’t out of options to retaliate China still has a range of options to strike back at the Washington, experts said, including suspending cooperation on combating fentanyl, placing higher quotas on agricultural products and going after the U.S. trade in services in China such as finance and law firms. U.S. total goods trade with China was an estimated $582 billion in 2024, making it the top trader in goods with the U.S. The 2024 deficit with China in goods and services trade was between $263 billion and $295 billion. Foreign Ministry spokesperson Lin Jian appeared to give short shrift to talk of dialogue with the Trump administration. I don’t think what the U.S. has done reflects a willingness for sincere dialogue. If the U.S. really wants to engage in dialogue, it should adopt an attitude of equality, mutual respect and mutual benefit, Lin said. In Hong Kong, where stocks were slightly higher Tuesday, Chief Executive John Lee blasted the latest U.S. tariffs as bullying, saying the ruthless behavior has damaged global and multilateral trade and brought great risks and uncertainties to the world. Lee said the city would link its economy closer to Chinas development, sign more free trade agreements, attract more foreign companies and capital to Hong Kong, and support local enterprises in coping with the impact of the tariffs. Associated Press writers Chris Megerian, Josh Boak, Fu Ting, Christopher Bodeen, and Kanis Leung contributed to this report.
Category:
E-Commerce
The U.S. stock market is careening through a second straight day of stunning swings Tuesday as uncertainty reigns about what whether President Donald Trump will ease up on his trade war, which is scheduled to kick into a higher gear after midnight. The S&P 500 lost an early gain of 4.1%, which had it on track for its best day in years, and slumped 1.7% with about an hour left in trading. The Dow Jones Industrial Average lost 403 points, or 1%, after giving up its earlier surge of 1,460 points, while the Nasdaq composite was 2.4% lower, as of 3:13 p.m. Eastern time. Stocks globally had rallied much more earlier in the day, with indexes up 6% in Tokyo, 2.5% in Paris and 1.6% in Shanghai. But even after those jumps, analysts had been warning to expect more swings up and down for financial markets not just in the days ahead but also the hours. The big question remains centered on how long Trump will keep his stiff tariffs on other countries, which would raise prices for U.S. shoppers and slow the economy. If they last a long time, economists and investors expect them to cause a recession. But if Trump lowers them through negotiations relatively quickly, the worst-case scenario can be avoided. Hope still remains on Wall Street that negotiations may be possible, and Trump said Tuesday that a conversation with South Korea’s acting president helped them reach the confines and probability of a great DEAL for both countries.” Their top TEAM is on a plane heading to the U.S., and things are looking good, Trump said on his Truth Social platform. We are likewise dealing with many other countries, all of whom want to make a deal with the United States. Japanese stocks led global markets higher after the countrys prime minister, Shigeru Ishiba, appointed his trade negotiator for talks with the United States. It was based on an agreement between Ishiba and Trump, Japanese officials said. But investors should still remain cautious, said Sameer Samana, a senior global market strategist for Wells Fargo Investment Institute. He pointed to how the key countries continue to escalate, rather than de-escalate. China said it will fight to the end and warned of countermeasures after Trump threatened on Monday to raise his tariffs even further on the worlds second-largest economy. That led White House press secretary Karoline Leavitt to say Trump’s threats of even higher tariffs on China will become reality after midnight, when imports from China will be taxed at a stunning 104% rate. That would coincide with Trump’s latest set of broad tariffs, which are scheduled to kick in at 12:01 a.m. And Trump has made clear that he does not intend to have any exemptions or exclusions in the tariffs, according to the country’s top trade negotiator, Jamieson Greer. The U.S. trade representative also said in testimony before a Senate committee that roughly 50 countries have already been in contact, and he’s told them: “If you have a better idea to achieve reciprocity and to get our trade deficit down, we want to talk with you, we want to negotiate with you. Trumps trade war is an attack on the globalization thats shaped the world’s economy and helped bring down prices for products on store shelves but also caused manufacturing jobs to leave for other countries. Trump has said he wants to narrow trade deficits, which measure how much more the United States imports from other countries than it sends to them as exports. On Wall Street, health insurers gained ground after the Centers for Medicare & Medicaid Services announced a stronger-than-expected increase in Medicare Advantage payments for next year. Humana jumped 9.6%, United Health climbed 5.9%. On the losing end were companies that import many of the products they sell. Ralph Lauren sank 6.8%, for example. It sourced about 15% of its products from China last fiscal year. Best Buy doesn’t import many products directly from China, but the electronics industry in general has a complex supply chain that heavily depends on the country. Best Buy estimates vendor imports from China make up about 55% of the products it purchases, and the retailer’s stock fell 8.5% In the bond market, Treasury yields mostly rose for a second straight day to recover more of their sharp losses from prior months. The yield on the 10-year Treasury rose to 4.22% from 4.15% late Monday and from just 4.01% late Friday. Yields tend to rise with expectations for the U.S. economys strength and for inflation. Stan Choe, AP business writer AP Business Writers Matt Ott and Elaine Kurtenbach contributed.
Category:
E-Commerce
The United States said on Tuesday that 104% duties on imports from China will take effect shortly after midnight, even as the Trump administration moved to quickly start talks with other trading partners targeted by President Donald Trump‘s sweeping tariff plan. U.S. stocks retreated on the news. Global markets had previously posted gains on hopes that Trump might be willing to negotiate down the array of country and product-specific trade barriers he is erecting around the world’s largest consumer market. The administration has scheduled talks with South Korea and Japan, two close allies and major trading partners, and Italian Prime Minister Giorgia Meloni is due to visit next week. But the White House made clear that country-specific tariffs of up to 50% would nevertheless take effect at 12:01 a.m. Eastern Time (0401 GMT), as planned. Those tariffs will be especially steep for China, as Trump has ratcheted up duties on its imports to 104% in response to counter-tariffs Beijing announced last week. China has refused to bow to what it called “blackmail” and has vowed to “fight to the end.” Administration officials said they would not prioritize negotiations with the world’s No. 2 economic power. Trump’s sweeping tariffs have raised fears of recession and upended a global trading order that has been in place for decades. “Right now, we’ve received the instruction to prioritize our allies and our trading partners like Japan and Korea and others,” White House economic adviser Kevin Hassett said on Fox News. The White House said Trump instructed his trade team to create “tailor made” deals for the nearly 70 countries that have reached out for talks. Trump’s lead trade negotiator, Jamieson Greer, told Congress that his office is trying to work quickly but is not facing a particular deadline. “The president has been clear, again, that he’s not doing exemptions or exceptions in the near term,” Greer told lawmakers. China is bracing for a war of attrition, and manufacturers are warning about profits and scrambling to plan new overseas plants. Citing rising external risks, Citi cut its 2025 China GDP growth forecast to 4.2% from 4.7%. Three out of four Americans expect prices to rise as Trump’s tariffs kick in, according to a Reuters/Ipsos poll. Chipmaker Micron told customers it will impose a tariff-related surcharge starting on Wednesday, while U.S. clothing retailers said they are delaying orders and holding off on hiring. Running shoes made in Vietnam that now retail for $155 will cost $220 when Trump’s 46% tariff on that country takes effect, according to an industry group. Consumers are stocking up while they can. “I’m buying double of whatever – beans, canned goods, flour, you name it,” Thomas Jennings, 53, said as he pushed a shopping cart through the aisles of a New Jersey Walmart. Stock markets found a firmer footing on Tuesday after a gut-wrenching few days for investors which prompted some business leaders, including those close to Trump, to urge the president to reverse course. European shares bounced off 14-month lows after four straight sessions of heavy selling, while global oil prices steadied after falling to four-year lows. Wall Street’s main indexes had posted gains earlier in the day, but fell after the White House said the tariffs on China would take effect. Europe eyes counter-measures The European Commission, meanwhile, is mulling counter-tariffs of 25% on a range of U.S. goods including soybeans, nuts and sausages, though other potential items like bourbon whiskey were left off the list. Officials said they stood ready to negotiate. The 27-member bloc is struggling with tariffs on autos and metals already in place, and faces a 20% tariff on other products on Wednesday. Trump has also threatened to impose tariffs on EU alcoholic drinks. European pharma companies, also fearful of the tariff fallout, warned the president of the European Commission, Ursula von der Leyen, in a meeting that Trump’s tariffs would expedite the industry’s shift away from Europe and towards the United States. Susan Heavey, Trevor Hunnicutt and Joe Cash, Reuters Writing by Andy Sullivan, Matthias Williams and John Geddie.
Category:
E-Commerce
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