China strongly condemned US President Donald Trump’s threat to impose an additional 50% tariff on Chinese goods as “blackmail” on Tuesday. This came after Trump demanded that Beijing retract its plans for retaliatory tariffs.
Should both sides remain firm, and Trump proceed with his threat, the total new tariffs on Chinese goods entering the United States could surge to 104% this year. This would significantly escalate the ongoing trade war, which has already caused the most substantial market declines since the pandemic.
China’s commerce ministry issued a statement, asserting that “The US side’s threat to escalate tariffs against China is a mistake compounded by another mistake, once again revealing the American side’s nature of blackmail.” The ministry further warned, “If the US insists on having its way, China will fight to the end.”
Trump stated that he would implement the extra 50% tariff on US imports from China on Wednesday if Beijing did not withdraw the 34% tariffs it had placed on US products the previous week. China’s tariffs were a direct response to the 34% “reciprocal” duties announced earlier by Trump.
Following Trump’s tariffs last week, which levied a 34% duty on Chinese goods in addition to a previous 20% imposed this year, the average US tariff on Chinese goods is already set to rise to 76%.
Economists have increasingly questioned the potential benefits for the White House of further tariff increases. Xu Tianchen, a senior economist at the Economist Intelligence Unit, commented, “Since China already faces a tariff rate exceeding 60%, an additional 50% or even 500% increase makes little difference.” He suggested potential Chinese responses, including halting US agricultural purchases, matching US tariffs, and expanding export controls on various chemical elements.
