China Vows Retaliation After Trump Threatens New 10% Tariff Hike

China has pledged to take necessary countermeasures following U.S. President Donald Trump's announcement of additional tariffs on Chinese imports.

China’s Ministry of Commerce firmly opposed Trump’s latest tariff escalation, warning that retaliatory actions will be taken if needed.

"If the U.S. insists on going down this path, China will implement all necessary measures to safeguard its legitimate rights and interests," a spokesperson for the Ministry of Commerce stated, as translated by CNBC.

The statement urged the U.S. to avoid repeating past mistakes and return to fair negotiations to resolve trade conflicts.

Trump Announces New Tariffs Amid U.S.-China Trade Tensions

Trump revealed on Thursday that an extra 10% tariff on Chinese goods will take effect on March 4, aligning with the start of China’s annual parliamentary meetings. This follows an earlier 10% tariff increase imposed on February 4.

The U.S. administration cited China’s involvement in the fentanyl trade as a key reason for these tariffs. The potent drug, whose precursors are largely produced in China and Mexico, has contributed to thousands of overdose deaths annually in the United States.

How China Might Respond to the New U.S. Tariffs

Trade experts anticipate China’s retaliation will be strategic yet measured. Potential countermeasures include:

• Increasing tariffs on select U.S. imports
• Adding more American companies to its "unreliable entity list"
• Tightening export controls on critical minerals

"China's response will likely be calibrated, as President Xi Jinping aims to keep diplomatic channels open while mitigating economic risks," noted Neil Thomas, a Chinese politics expert at the Asia Society.

Despite ongoing tensions, China’s exports remain a crucial factor in its economy, with the U.S. being its largest trading partner on a single-country basis.

Targeting Key U.S. Industries for Maximum Impact

Trade analysts believe China’s response will focus on industries that directly impact Trump’s voter base.

“Beijing will likely retaliate against sectors that matter most to Trump supporters while leaving room for further negotiations,” said Alfredo Montufar-Helu, head of The Conference Board’s China Center.

In response to the February tariffs, China had already:

• Raised tariffs on specific U.S. energy imports
• Placed two U.S. firms on its unreliable entity list
• Increased export restrictions on critical minerals essential to the U.S.

As trade tensions escalate, global markets will be watching closely for Beijing’s next move.

(Sources: cnbc.com)