China’s Ministry of Commerce has strongly opposed the latest tariff increase announced by U.S. President Donald Trump, warning of necessary countermeasures if the U.S. follows through with its threats. In a statement released Friday, the ministry emphasized its commitment to defending China’s trade interests.
“If the U.S. insists on its own way, China will take all necessary countermeasures to defend its legitimate rights and interests,” the ministry stated, urging Washington to return to diplomatic negotiations.
Tariff Hike Sparks Fresh Trade Tensions
Trump revealed plans for an additional 10% tariff on Chinese imports beginning March 4, which coincides with China’s annual parliamentary meetings. This follows an identical 10% tariff imposed earlier in February. The move is said to be in response to China’s alleged role in the illegal trade of fentanyl, a synthetic opioid contributing to overdose deaths in the U.S.
Beijing has condemned the new tariffs, calling them a misguided attempt to shift blame rather than addressing the root causes of the drug crisis. The Chinese government previously enacted retaliatory measures, including duties on American energy exports and tighter restrictions on certain U.S. companies.
Beijing’s Possible Response
Trade analysts expect China’s reaction to be measured yet impactful. Potential countermeasures include heightened tariffs on specific U.S. goods, blacklisting American companies, and tightening export controls on critical minerals that are vital for industries such as electronics and defense.
“China’s strongest leverage could be restricting the supply of critical minerals to the U.S.,” said Stephen Olson, a senior fellow at the Institute of Southeast Asian Studies.
Escalation Risks and Economic Fallout
Despite the retaliatory stance, analysts suggest that Beijing may seek negotiation channels to avoid further economic strain. China’s export sector remains a key driver of its economy, and abrupt trade restrictions could further hamper growth, which is already facing pressure.
However, Trump has signaled his willingness to extend tariff measures, hinting at broader economic policies favoring “reciprocal tariffs.” His administration is set to review China’s trade practices by April 1, potentially leading to additional duties on Chinese imports.
As tensions rise, market observers will closely watch for policy shifts that could significantly impact global economic stability. The back-and-forth actions between the two largest economies pose ongoing risks to supply chains and investment flows worldwide.
