BEIJING: In a heated exchange on Tuesday, April 8, 2023, China vehemently criticized U.S. President Donald Trump's proposal to impose an additional 50 percent tariff on Chinese goods. This threat came after Trump demanded that Beijing retract its plans to introduce counter-tariffs. The escalating tensions have added fuel to an already smoldering trade war between the two economic giants.

If neither side agrees to compromise and Trump follows through with his tariff increase, the total tariff rates on Chinese imports to the U.S. could soar to a staggering 104 percent this year. Such a dramatic escalation would signal a deepening trade conflict that has already resulted in significant market downturns, marking some of the largest financial losses since the onset of the COVID-19 pandemic.

In a statement expressing its discontent, China's Ministry of Commerce described the U.S. tactics as “blackmail,” accusing the American administration of compounding previous errors in its trade policy. “The U.S. side's threat to escalate tariffs against China is a mistake on top of a mistake,” the statement read, underscoring the Chinese government's resolve. “If the U.S. insists on having its way, China will fight to the end. If the U.S. escalates its tariff measures, China will resolutely take countermeasures to safeguard its own rights and interests.”

Trump's latest tariff threat was aimed at imports from China, which would be enforced if Beijing did not retract its own recent imposition of 34 percent tariffs on U.S. products. This cycle of tariff retaliation began when Trump announced reciprocal duties of 34 percent just the week before, aimed specifically at Chinese goods.

As a result of these ongoing tariff battles, the average tariff rate that the U.S. imposes on Chinese goods is projected to reach an alarming 76 percent. This figure comes in light of the 34 percent tariff introduced last week by Trump, which stacks on top of a previous 20 percent tariff he enacted earlier this year. Economists are increasingly skeptical about the potential benefits of further raising these tariffs, given the current levels.

“Since China already faces a tariff rate in excess of 60 percent, it doesn't matter if it goes up by 50 percent or 500 percent,” noted Xu Tianchen, a senior economist at the Economist Intelligence Unit. He emphasized that China has a range of countermeasures it could deploy, including halting U.S. agricultural imports and matching any further U.S. tariffs. Additionally, China could bolster its export controls on a wide array of chemical elements, further complicating the trade dynamics.

The situation escalated notably last week when Trump unilaterally imposed sweeping tariffs, prompting widespread concern about a looming international recession. His actions have even led to criticism from members of his own Republican Party, who fear the repercussions of such aggressive economic policies on both domestic and global markets.