Beijing, April 8, 2025 — China has issued a stern warning in response to Donald Trump’s latest comments threatening a new wave of tariffs, declaring it is prepared to “fight to the end” to defend its economic interests.
Trump, who is campaigning for a return to the White House in the upcoming U.S. presidential election, recently proposed significant tariff hikes on Chinese imports if elected. His remarks have reignited fears of a renewed trade war between the world’s two largest economies.
In a strongly worded statement on Monday, China’s Ministry of Commerce condemned Trump’s threats, stating, “China will not sit idly by in the face of unilateral pressure and trade bullying. We are ready to take all necessary measures and fight to the end to protect our national dignity and economic stability.”
Despite the escalating rhetoric, Asian financial markets opened higher on Tuesday, with investors appearing to shrug off the initial tensions. The Shanghai Composite rose 0.8%, Hong Kong’s Hang Seng gained 1.2%, and Japan’s Nikkei 225 climbed 0.9%, driven by optimism around regional tech stocks and robust trade data from South Korea.
Analysts suggest that markets are taking a wait-and-see approach, given that Trump is not currently in office and any new tariffs would be contingent on a potential election win. “There’s still a lot of uncertainty about the actual implementation of these threats,” said Daniel Wong, a senior economist at EastBridge Capital. “Markets are reacting more to economic fundamentals than political rhetoric at this stage.”
The Chinese government also emphasized its preference for stability and dialogue, stating that cooperation, not confrontation, remains the best path forward. “We urge the U.S. side to return to a rational and constructive approach,” the commerce ministry added.
During his previous term, Trump imposed tariffs on billions of dollars’ worth of Chinese goods, triggering a tit-for-tat trade war that disrupted global supply chains and weighed heavily on investor confidence. While the Biden administration maintained several of those tariffs, relations between the two nations had stabilized slightly in recent years.
Business leaders in both countries have expressed concern over the renewed tensions. The American Chamber of Commerce in China warned that further tariff escalations could hurt both economies and complicate already strained diplomatic ties.
As the geopolitical landscape becomes increasingly volatile ahead of the U.S. elections, global markets will be watching closely to see whether these trade threats materialize into policy—or remain campaign rhetoric.