China’s Ministry of Commerce strongly condemned U.S. President Donald Trump’s latest tariff threat, stating that it “firmly opposes” the additional 10% duty hike on Chinese goods. The ministry warned of potential retaliation if necessary, making it clear that China would take “all necessary countermeasures to defend its legitimate rights and interests.”
“If the U.S. insists on its own way, China will take all necessary countermeasures to defend its legitimate rights and interests,” a Ministry of Commerce spokesperson stated, as translated by CNBC. The statement also urged Washington to “not repeat its own mistakes” and instead return to resolving conflicts through equal and fair negotiations.
The warning followed Trump’s Thursday announcement of new tariffs set to take effect on March 4, coinciding with the start of China’s annual parliamentary meetings. These new duties would be in addition to the 10% tariff hike imposed by Trump on February 4. According to the U.S. president, both rounds of tariffs are in response to China’s role in the fentanyl trade. The potent drug, with key precursors largely produced in China and Mexico, has led to tens of thousands of overdose deaths annually in the U.S.
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China warns of ‘all necessary countermeasures’ after Trump announces a 10% tariff hike on Chinese imports. The trade war just got another round of fuel
China’s Possible Response and Economic Considerations
Experts predict that China’s immediate retaliation could involve increasing tariffs on select American imports, adding more U.S. companies to its unreliable entity list, and tightening export controls on critical minerals. Neil Thomas, a fellow on Chinese politics at the Asia Society, stated that while Beijing would respond, its retaliation would likely remain “measured.” He noted that Chinese President Xi Jinping has an incentive to maintain dialogue with Washington to avoid worsening China’s already struggling economic growth.
Despite ongoing economic struggles, China’s exports have remained a rare bright spot. Given that the U.S. is China’s largest trading partner on a single-country basis, Beijing may approach the situation cautiously. However, retaliation could be targeted at industries vital to Trump’s voter base. Alfredo Montufar-Helu, head of the China Center at The Conference Board, suggested that China might hold back on extreme measures in hopes of future negotiations to prevent further economic repercussions.
Earlier this month, after the first round of U.S. tariffs, China responded by raising duties on certain U.S. energy imports and adding two American companies to its unreliable entity list, restricting their operations within China. The country also tightened controls on the export of critical minerals essential for U.S. industries.
“The sharpest arrow that China has in its quiver would be to restrict U.S. access to critical minerals that can’t readily be sourced elsewhere,” said Stephen Olson, a senior fellow at the Institute of Southeast Asian Studies and former U.S. trade negotiator.
