China Responds to Trump’s Tax Threat with Plans for Firm Countermeasures

China has announced that it will take “firm countermeasures” if U.S. President Donald Trump proceeds with his threat of imposing an additional 50% tariff.

In a statement from the Chinese Ministry of Commerce, it was emphasized that China opposed the U.S. tax increases and would resist any further attempts to raise tariffs. The statement also noted that the U.S. was persisting in its mistakes and revealed its coercive nature once again. “If the U.S. continues down this path, China will respond with firm countermeasures to the end,” the statement said.

The People’s Bank of China also indicated that it would provide additional support if necessary, including potential borrowing assistance to maintain stability in the capital markets. Furthermore, the Central Huijin Investment Co., the asset management firm under China’s sovereign wealth fund, said it would buy shares from the Chinese stock market, as it had the previous day, to help stabilize prices.

Following Trump’s announcement of the “reciprocal tariffs,” Asian stock markets, including China, saw declines.

Trump’s Reciprocal Tariffs and China’s Response

This development comes after U.S. President Trump declared that the U.S. would impose a 34% additional tariff on Chinese goods as part of the “reciprocal tariffs.” The U.S. administration had previously announced that it would increase tariffs on Chinese imports by 10% and an additional 24% as a “reciprocal tariff,” bringing the total increase to 34%. With these new tariff hikes, the minimum customs duty on Chinese products imported into the U.S. had risen to 54%.

China was the first country to respond to the U.S. tax increases, announcing that it would impose a matching 34% tariff. In addition to this, China has filed a complaint against the U.S. at the World Trade Organization, imposed restrictions on the export of rare-earth elements, and announced sanctions against U.S. companies.

In retaliation, President Trump declared that if China did not withdraw the 34% additional tariff by April 8, he would increase the tariffs by another 50% and cancel planned talks with China.