China Promises Retaliation if US Implements Additional 50% Tariffs on Its Goods

China has vowed to retaliate with higher tariffs in response to US President Donald Trump's latest threat to impose additional duties.

The statement came a day after Trump threatened China with an additional 50% tariff if it continued with its current 34% retaliatory tariffs.

The US action was denounced by the Chinese Ministry of Commerce, which called it "a mistake on top of a mistake." China "will fight to the end" if Washington moves forward, the ministry added, adding that the most recent escalation "exposes the exploitative nature of the US."

Fears of a new trade war between the two biggest economies in the world are growing as Washington and Beijing prepare to impose broad tariffs on one another this week, according to Bloomberg.

What Trump said:

On his private social media platform, Truth Social, Trump threatened to impose an additional 50% tariff on Chinese goods beginning April 9. He likewise said: "All talks with China concerning their requested meetings with us will be terminated."

Bloomberg reported, citing a White House official, that the new 50% tariff would be in addition to the previously announced 34% "reciprocal" tariff introduced on April 2 and the 20% tariff imposed earlier this year. If enforced, China's effective tariff rate would reach 104%.

"Be strong and courageous," Trump told Americans Monday, adding that "greatness will be the result." His remarks coincided with a 1,200-point decline in the Dow Jones Industrial Average, which was evidently a response to growing trade tensions. In order to rebalance international trade, Trump justified the tariffs.

Trump has accused other nations of taking advantage of the United States in trade agreements, and he has often called China the "biggest abuser."

China's Response

An editorial in the Chinese Communist Party's official newspaper this week stated that Beijing is no longer actively seeking a trade agreement with the United States, but it is still open to talks.

Notably, since taking office again for a second term, Trump has not communicated with Chinese President Xi Jinping. After taking office, no US president has been silent for as long as this in 20 years.

The US threats were also denounced by China's embassy in Washington, which emphasized that China will protect its national interests and said that they are "not the correct way" to interact with Beijing.