By Agencies and published by CNA
Beijing – China decried as “blackmail” on Tuesday (Apr. 8) US President Donald Trump’s threat to add a further tariff of 50 percent on its goods, after he demanded that Beijing withdraw its plans for counter-tariffs.
If neither side blinks and Trump sticks to his plans, total new levies could climb to 104 percent this year on Chinese goods imported into the US, escalating a trade war that has already spurred the biggest market losses since the pandemic.
“The US 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 US insists on having its way, China will fight to the end. If the US escalates its tariff measures, China will resolutely take countermeasures to safeguard its own rights and interests.”
Trump said he would impose the additional 50 percent duty on US imports from China on Wednesday if Beijing did not withdraw the 34 percent tariffs it had imposed on US products last week.
Those Chinese tariffs, in turn, had come in response to 34 percent “reciprocal” duties announced by Trump.
The average US tariff on Chinese goods is already set to climb to 76 percent following Trump’s levies last week, which hit China with a tariff of 34 percent, in addition to 20 percent he previously imposed this year.
The moves have led economists to question whether the White House stands to gain much from hiking rates further.
“Since China already faces a tariff rate in excess of 60 percent, it doesn’t matter if it goes up by 50 percent or 500 per cent,” said Xu Tianchen, senior economist at the Economist Intelligence Unit.
“What China can do is stop US farming purchases, match US tariffs and expand its export controls across the periodic table of chemical elements,” he added
Trump upended the world economy last week with sweeping tariffs that have raised fears of an international recession and triggered criticism even from within his own Republican Party.
China’s central bank on Tuesday also vowed to back major state-backed fund Central Huijin Investment in stabilising the market, as bourses in Asia were roiled in a trade war launched by Washington.
Beijing’s People’s Bank of China said it “firmly supports Huijin Investment … in increasing its holdings of stock market index funds”.
It promised to provide the fund “with sufficient re-lending support when necessary, resolutely maintaining the smooth operation of the capital market”.
Trillions of dollars have been wiped off combined stock market valuations in recent sessions.
As markets tumbled, Central Huijin Investment vowed to help ensure “stable operations” of the market with a share buy-back programme.
In a statement, the firm said it “has once again increased its holdings of exchange-traded funds and will continue to increase its holdings in the future”.
The Shanghai Composite Index dipped 0.07 percent, or 2.31 points, to 3,094.26 at the open on Tuesday.
CAPTIONS:
Top: An aerial view of Xiasha Container Terminal on a canal in Hangzhou in east China’s Zhejiang province on Sunday, Apr. 6, 2025. Chinatopix Via AP and published by Yahoo!News
Insert: A trader works on the floor at the New York Stock Exchange (NYSE) in New York City, Apr. 7, 2025.Photo: Reuters/Brendan McDermid and published by CNA
Front Page: A drone view shows shipping containers from China, at the China Shipping (North America) Holding Company Ltd facility at the Port of Los Angeles in Wilmington, California on Feb. 4, 2025. File photo: Reuters/Mike Blake and published by CNA
Also read: Markets sink as Trump’s tariffs roil global trading system
Trump announces 10% tariff on all imports, with higher rates for some trading partners
Thai economist calls for setting up ‘war room’ to cope with Trump’s 36% tariff
Thaksin threatens coalition partners to vote for casino bill or be kicked out
Many buildings damaged because pillars not reinforced with steel: Academic
Crisis-hit Thai tourism staring down an abyss
