Global Trade Showdown: China Vows Defiance After Trump Slaps 104% Tariffs on All Chinese Imports

Global Trade Showdown: China Vows Defiance After Trump Slaps 104% Tariffs on All Chinese Imports

DECK
World markets reel as Beijing denounces 'economic coercion' and pledges to counter Trump’s sweeping tariff escalation; EU, Canada prepare retaliatory measures.

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KEY FACTS 

• What: United States imposes cumulative 104% tariffs on all Chinese imports.

• Where: US-China trade corridor; global economic impact.

• When: Tuesday, following months of escalating tensions.

• Why: Trump's administration aims to pressure China on trade imbalance and manufacturing.

• China’s Response: Vows to fight to the end, citing ‘economic coercion’.

• Global Reaction: EU and Canada signal countermeasures; market volatility spikes.

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SITUATION SNAPSHOT 
Markets shuddered and international trading floors buzzed with anxiety as President Donald Trump’s full-throttle tariff assault on China went into effect. In Beijing, officials fired back with stern warnings and defiant rhetoric, while global allies scrambled to assess the fallout of what many now call a full-scale trade war.

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WHAT WE KNOW 

• The US under Trump’s leadership has imposed a cumulative 104% tariff on Chinese imports, accounting for previous hikes and the latest surge.

• The move comes after China matched an earlier 34% tariff from the US, prompting an additional 50% hike from Washington.

• Premier Li Qiang assured the public that China's 2025 economic strategy accounted for such volatility, reinforcing Beijing’s readiness to “fully offset” adverse impacts.

• Li called out the US actions as "unilateralism, protectionism, and economic coercion," stating China’s response aims to defend not only national interests but the integrity of global trade norms.

• Trump remains firm in his belief that these tariffs will help rejuvenate domestic manufacturing and reduce reliance on foreign suppliers.

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WHAT’S NEXT 

• The European Union is expected to announce counter-tariffs as early as next week, with goods like soybeans and motorcycles targeted in response.

• Canada confirmed it will enact its own set of tariffs on specific US auto imports starting Wednesday.

• The White House is pushing for “tailored deals” with allies such as Japan and South Korea.

• Economists warn of rising inflation and prolonged supply chain disruptions as the tariffs ripple through global markets.

• Press conferences from EU trade ministers and the Canadian finance ministry are scheduled within the week.

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VOICES ON THE GROUND 
"Protectionism leads nowhere - openness and cooperation are the right path for all," — Premier Li Qiang during his call with European Commission President Ursula Von der Leyen.

"We are taking in almost $2 billion a day from tariffs," — President Donald Trump, defending his policy.

"If the EU is forced to respond, so be it," — French President Emmanuel Macron, urging reconsideration.

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CONTEXT 
Trade tensions between the US and China have been escalating since Trump's return to the White House. His administration previously enacted baseline 10% tariffs, triggering a chain of retaliatory measures from key global economies. The current trade war recalls 2018’s tariff standoff, but experts say today’s stakes are far higher due to tighter global interdependence and fragile post-pandemic recoveries.

Historically, trade wars have proven damaging to global growth, often leading to recessions. Economists across institutions now warn of rising consumer costs, market instability, and a potential slowdown in global GDP as a result of the current trajectory.

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REPORTER INSIGHT
From Beijing to Brussels, the uncertainty is palpable. Trade experts now scramble to reassess forecasts once thought stable. In conversations with diplomats, the prevailing mood is clear: what began as economic rivalry may soon test the very foundation of international cooperation.