The Chinese flag steals on the Place de Tiananmen, as we can see in the Great Salle of the People where meetings of the National Popular Congress continued in Beijing on March 6, 2025.
Greg Baker | AFP | Getty Images
The Chinese Ministry of Commerce said that it “resolutely opposes” “the threat of US President Donald Trump to include prices and has promised to take countermeasures to protect his own rights and interests.
The comments occurred after Trump said that he would impose an additional 50% right on US imports from China on Wednesday, if Beijing did not withdraw the 34% rate he imposed on American products last week.
“The American threat of intensifying prices on China is an error in addition to an error,” the statement said, according to a translation of the CNBC. “China will never accept it. If the United States insists on its own way, China will fight until the end.”
Last Friday, the Chinese finance ministry announced 34% of additional prices on all goods imported from the United States, from April 10, in retaliation for Trump imposing new 34% samples on China.
The leading prices follow two previous cycles of prices from 10% to 15%, mainly targeting agricultural and energy products imported from the United States, the scope of extended prices reflects hopes reduced to Chinese leadership for a trade agreement with the United States, said Gabriel Wildau, CEO of Teneo.
The prices of 34% of Trump on China were at the top of 20% of the rights deployed since February, which bears the total of new prices this year on China at 54%. Additional levies increased the weighted average rate in the United States on China up to 65% and could work the China economy from 1.5 to 2 percentage points this year, according to Morgan Stanley.
“Since China is already faced with more than 60% of the rate rate, it doesn’t matter if it increases by 50% or 500%,” said Tianchen Xu, main economist in the economist’s intelligence unit, suggesting that Beijing is prepared for a “fully” trade war with the United States
“China is on the defensive side, but fundamentally, the two parties test the limit of the other,” said Xu.
As risks of an intense increase in the United States-China trade war, Beijing could use new reprisals, such as stopping purchasing of American agricultural products, corresponding to the American prices and the additional expansion of export controls on metals and minerals, added XU.
Beijing has already placed export borders on Key elements of rare earthsexports prohibited from Double use articles to a dozen American entitiesCompanies of companies at its “List of unreliable entities”, “ Submit them to wider restrictions while operating in China.
China Populaire Banque established the average rate on Tuesday For Yuan Onshore at 7.2038 per dollarThe lowest level since September 2023, according to information on the wind supplier wind. The Yuan is authorized to negotiate in a band of 2% of this median point rate.
The weakening of the Yuan is a “big signal”, Robin Brooks, principal researcher at the Brookings Institution declared to Squawk Box Asia in CNBC, “That said politely that it becomes a little too much, we put you in note, we can devalue if we want and that bigger things can come if you continue this.”
“It’s a clear blow on the bow of Washington,” added Brooks.
The Chinese yuan onshore has weakened up to 0.39% to 7.3363 per dollar, while the Yuan Offshore has changed little.
Trump has shown few reversal signs on prices despite increasing pressure on the financial markets and signs of frustration, even among his allies. In a Publication on the social media platform Truth Social Monday, the president declared “all discussions with China concerning their meetings requested with us will be dismissed!”
The American State Department did not immediately respond to the request for CNBC comments.
“Climbing is probably the only short -term result, but the negotiations will finally come while the two parties feel the pinch of the economic slowdown,” said Xu.
