China says it won’t back down against US ‘blackmail’ with tariffs

Tensions escalated in the global trade arena on Tuesday as China fiercely pushed back against mounting U.S. tariffs, warning it would “fight to the end” if President Donald Trump proceeded with new threats to dramatically raise duties on Chinese goods.

Beijing issued a sharp rebuke after Trump signaled he could more than double existing tariffs on Chinese imports, following China’s move to match the U.S. tariffs with reciprocal duties. “The U.S. side’s threat to escalate tariffs against China is a mistake on top of a mistake,” China’s commerce ministry declared. “It once again exposes the American side’s blackmailing nature.”

Trump’s tariff policy — targeting U.S. imports with rates starting at 10% and reaching up to 50% for some goods — has sparked widespread disruption. Chinese exporters, from tableware to flooring manufacturers, are now warning of shrinking profits and considering relocating production abroad. Meanwhile, the European Union and other major economies have signaled growing concern.

The EU announced a list of proposed countermeasures, including a 25% tariff on various American products like soybeans, nuts, and sausages. While bourbon whiskey and other items were spared for now, European officials made clear their intention to stand firm. “Sooner or later, we will sit at the negotiation table with the U.S. and find a mutually acceptable compromise,” EU Trade Commissioner Maros Sefcovic said.

The tariff standoff has sent shockwaves through financial markets. After several days of steep losses, stocks appeared to stabilize on Tuesday. Japan’s Nikkei Index rebounded 6% following a trade talk agreement between Trump and Prime Minister Shigeru Ishiba. Chinese blue chips recovered 1% after Monday’s dramatic plunge, while Hong Kong’s Hang Seng Index climbed 2%.

However, other economies remained vulnerable. Indonesia’s markets saw a 9% drop upon reopening after a holiday, with the rupiah hitting a record low. The country’s central bank pledged intervention, mirroring efforts by global authorities to calm investor fears.

Trump defended his aggressive trade agenda, framing it as essential to rebuilding the U.S. industrial base. “It’s the only chance our country will have to reset the table,” he said.

Meanwhile, Vietnam—facing some of the steepest upcoming U.S. duties—has requested a 45-day reprieve and offered to boost purchases of American defense and security goods to offset trade imbalances.