U.S. President Donald Trump has intensified his trade war with China, threatening to impose an additional 50% tariff on Chinese imports unless Beijing withdraws its 34% retaliatory tariffs. This move could raise total U.S. tariffs on Chinese goods to 104%, sparking concerns of economic fallout in both countries.
China labeled the latest U.S. move as economic “blackmail”, promising to “fight to the end” rather than surrender to economic pressure. Beijing is taking steps to stabilize its economy, with the central bank pledging liquidity support, state firms increasing investments, and stock buybacks from major companies to stabilize markets. Chinese President Xi Jinping is also seeking to bolster alliances in Europe and Southeast Asia, with planned meetings in Spain, Vietnam, and Malaysia.
Trump’s administration has rejected reports of a potential pause in tariffs, calling them “fake news,” with Trump describing any resulting market turbulence as a necessary cost. However, close advisers like Elon Musk and hedge fund manager Bill Ackman have voiced skepticism about the strategy’s long-term damage to the economy.
