U.S. President Trump last week launched an unprecedented tariff policy, primarily targeting China with an additional 34% tariff, expected to take effect on the 9th Asian time.
In response to this threat, China retaliated yesterday by announcing a 34% retaliatory tariff on all U.S. imported goods (effective on the 10th), and is preparing to file a lawsuit with the World Trade Organization (WTO), accusing the U.S. tariffs of violating international rules, while actively seeking cooperation with economic entities like the EU to address the pressure.
Trump Warns China: Tariffs Will Be Raised to 50% If Not Withdrawn
In response, Trump issued a stern warning to China late last night (7th). He stated on his social media platform Truth Social:
Yesterday, China introduced a 34% retaliatory tariff, in addition to their existing record-high tariffs, non-monetary tariffs, illegal subsidies to companies, and long-term massive currency manipulation. Despite my warning that any country imposing additional tariffs in retaliation beyond their long-standing tariff abuse against our country would immediately face new, higher tariff responses beyond the original set tariffs.
Therefore, if China does not withdraw its 34% tariffs beyond long-term trade abuse by tomorrow, April 8, 2025, the United States will impose an additional 50% tariff on China, effective from April 9.
Moreover, all negotiations requested by China with us will be terminated! Negotiations with other countries requesting meetings will immediately commence.
China Fearless of Threats, Vows to Respond Fully
Regarding Trump's threat, the Chinese state media Global Times published an editorial today (8th) stating that "Tariffs Cannot Scare China" and criticized the U.S. government for announcing tariffs on all trade partners under the guise of "reciprocity", sparking international outrage.
China's resolute countermeasure is fundamentally because the U.S. tariff reasons are completely unfounded.
The U.S. uses "addressing unfair foreign trade practices" as a pretext to impose high tariffs on global trade partners, which is essentially protectionism and unilateral bullying, a political fraud disguised as "economic measures". This approach openly violates the World Trade Organization (WTO) core rules and disregards China's legitimate rights in international trade and years of opening-up efforts. The so-called "reciprocal tariffs" will cause massive damage to the world trade system and global supply chains, severely dragging down global economic growth...
The Chinese Ministry of Commerce earlier responded that "if the U.S. insists on its course, China will fully respond", indicating a determination to stand firm. Experts analyze this reveals Beijing's strategic calculations, believing tariffs are not just a negotiation tool for Trump but will severely damage international trade, with potentially more severe impacts on the U.S. than on China.
However, we know that China's domestic economy has been struggling in recent years, and whether these tariff wars will further worsen the already severe economic environment remains to be observed over time.
EU Adopts 'Fight and Talk' Strategy, Proposes Zero-for-Zero Tariffs
On the other hand, at a trade ministers' meeting of 27 countries in Luxembourg, the EU reached a consensus to prioritize resolving trade disputes through consultation. EU Trade Commissioner Maros Sefcovic stated that they have proposed a "zero-for-zero" tariff negotiation to the U.S., which would involve mutually eliminating industrial product tariffs.
However, the EU also clearly stated they will not wait indefinitely. Sefcovic outlined the EU's three-point stance:
- First, acknowledging the importance of cooperation with the U.S. in strategic areas like addressing overcapacity in non-market economies, semiconductor competition, and critical raw material supply
- Second, candidly admitting that negotiations with the U.S. will be time-consuming and are currently only in preliminary stages, as the U.S. views tariffs as "corrective measures" rather than tactical tools
- Third, while seeking open negotiations, adopting a three-pronged strategy: defending interests through countermeasures, diversifying markets through new trade agreements, and preventing harmful trade diversion effects
In specific actions, regarding previous U.S. tariffs on steel and aluminum products, the EU plans to implement the first wave of retaliatory tariffs on April 15, with the list already submitted to member states for voting on the 9th. The second wave of counter-tariffs is scheduled for May 15.
How are other countries reacting?
Besides China and the European Union, reactions from other countries or regions include:
Canada:
Canada expressed disappointment with Trump's tariffs, believing they damage the spirit of the North American Trade Agreement (USMCA), but tends to ease conflicts through negotiations. Currently, Canada has implemented preliminary retaliatory tariffs on US goods (specific rates not disclosed), while expressing willingness to negotiate with the US to seek exemptions or reduce tariff impacts.
Japan:
Japan adopts a cautious stance, avoiding direct confrontation, emphasizing its alliance with the US, and seeking to resolve disputes through negotiations. Therefore, Japan has not yet announced retaliatory measures, with officials worried that retaliation might provoke a more hardline US response. They prefer to seek exemptions or tax reductions through diplomatic channels, especially regarding automotive industry-related tariffs.
South Korea:
South Korea expressed concerns about the tariff policy but maintains a relatively restrained attitude, hoping to maintain economic and security cooperation with the US. Therefore, South Korea has also not taken retaliatory actions, instead actively negotiating with the US to protect its automotive and electronic product exports, while seeking to deepen supply chain cooperation in exchange for preferential treatment.
Mexico:
Mexico protested Trump's tariffs, believing they threaten North American economic integration, but prefers negotiation over full retaliation. Currently, Mexico has not announced specific retaliatory measures, but the government stated it will consult with the US within the USMCA framework to seek exemptions for certain goods and may use immigration and border issues as negotiation leverage.
India:
India criticizes Trump's tariffs, believing they harm developing economies' interests, but adopts a wait-and-see approach. Similarly, India has not implemented retaliatory tariffs, is assessing impacts, and plans to seek reductions through multilateral negotiations (such as WTO) or bilateral consultations, particularly regarding agricultural products and the pharmaceutical industry.
Vietnam, Argentina, and Israel:
These three countries have already announced the cancellation of all tariffs on the US, becoming the first to choose compromise.
Taiwan:
While the Taiwanese government considers US tariffs on Taiwan "unreasonable and regrettable", it emphasizes that it will not impose retaliatory tariffs, but instead seek negotiations with the US to protect bilateral relations and Taiwan's economic interests.
President Lai Qingde recently stated publicly that Taiwan's economy is resilient and will not panic due to tariffs, viewing this as an opportunity to transform and deepen cooperation with the US.
