The trade dispute between China and the United States has intensified dramatically, with Beijing signaling a firm resolve to continue its opposition to American tariffs.
In response to escalating duties imposed by Washington, China announced it will raise tariffs on U.S. goods to 84 percent effective immediately. This action follows earlier market disruptions felt globally and prompted an urgent meeting between Australian Treasurer Jim Chalmers and Reserve Bank of Australia governor Michele Bullock.
The move is a direct reaction to the recent increase in U.S. import tariffs, which now total 104 percent. A white paper released by China’s Ministry of Commerce outlines Beijing’s position, stating, “If the US insists on further escalating its economic and trade restrictions, China has the firm will and abundant means to take necessary countermeasures and fight to the end.”
Despite calls for negotiation from various nations, Chinese officials have remained noncommittal regarding direct talks with the White House. Prior to this latest escalation, Beijing had already implemented a 34 percent tariff on U.S. imports, alongside export controls targeting rare earth minerals, and other retaliatory measures.
The white paper highlights what China views as a breach of commitments made during the “Phase One” trade deal signed previously. It specifically cites a recently enacted U.S. law mandating the sale of TikTok or its prohibition in the United States, arguing this action violates the principle of non-coercive technology transfer.
The ongoing situation surrounding TikTok further underscores the complexities of the dispute. After President Trump signed an order allowing TikTok to continue operating for 75 days pending a potential sale, representatives from ByteDance, TikTok’s parent company, communicated that China would not approve any deal until trade and tariff issues are addressed.
Furthermore, the paper contends that when considering trade in services and the performance of U.S. businesses within China, economic exchange between the two countries is largely balanced. While China reported a $26.57 billion deficit in trade services (including industries such as insurance, banking, and accounting) in 2023, Beijing argues that Trump’s tariffs—designed to address trade imbalances based on tangible goods—do not accurately reflect the full economic picture.
The Chinese Ministry of Commerce concluded its statement with a warning about the potential consequences of Washington’s policies:
“History and facts have proven that the United States’ increase in tariffs will not solve its own problems. Instead, it will trigger sharp fluctuations in financial markets, push up US inflation pressure, weaken the US industrial base and increase the risk of a US economic recession, which will ultimately only backfire on itself.”
China maintains that it is prepared to defend its interests as the trade war continues.
