China on Tuesday condemned the United States’ escalating trade actions, vowing to “fight to the end” against what it called American “blackmail,” as tensions intensified in a global trade war sparked by President Donald Trump’s sweeping tariff measures.
The warning from Beijing came after Trump threatened to raise tariffs on Chinese imports to more than 100% in response to China’s reciprocal duties. “The U.S. side’s threat to escalate tariffs against China is a mistake on top of a mistake, once again exposing the American side’s blackmailing nature,” China’s Commerce Ministry said in a statement.
“If the U.S. insists on having its way, China will fight to the end,” the ministry added.
The mounting trade conflict has rattled global financial markets and strained diplomatic relations. Chinese manufacturers spanning sectors from tableware to flooring have issued profit warnings and are weighing options such as relocating production abroad and renegotiating prices with customers.
The European Union also signaled plans for retaliatory tariffs, adding to a growing international backlash against U.S. measures that have impacted dozens of countries. The fear of a broader economic downturn has prompted business leaders, including some with close ties to Trump, to urge a reversal in policy.
Despite the uncertainty, markets showed signs of recovery. Japan’s Nikkei index rebounded 6% after falling to an 18-month low, buoyed by a trade dialogue agreement between Trump and Japanese Prime Minister Shigeru Ishiba. In China, the CSI 300 index gained 1%, and Hong Kong’s Hang Seng jumped 2% after Monday’s steep losses.
European and U.S. futures pointed to stronger openings, and oil prices rebounded after recent selloffs. However, not all markets stabilized. Indonesia’s stock index fell 9%, and the rupiah hit a record low after a holiday break. The central bank pledged intervention to stabilize the market.
Trump defended the tariffs ranging from a baseline 10% to as high as 50% for targeted goods claiming they are necessary to restore American industrial strength.
“It’s the only chance our country will have to reset the table,” Trump told reporters at the White House. “No other president would be willing to do what I’m doing.”