China News : China’s Foreign Minister Wang Yi vowed “retaliatory action” against the United States on Friday, March 7, condemning President Donald Trump’s decision to double tariffs on Chinese imports from 10% to 20% as a reckless escalation.
- China’s Foreign Minister Wang Yi promises retaliation after Trump raises tariffs to 20%.
- Beijing slams U.S. duties as “arbitrary,” plans measures beyond March 10 farm tariffs.
- Trade war heats up as China’s imports falter under U.S. pressure, markets slide.
China Warns of Further U.S. Retaliation After Trump Doubles Tariffs to 20%
Speaking at a Beijing press conference, Wang signaled Beijing’s readiness to expand beyond its March 10 tariffs on U.S. farm goods—15% on chicken, wheat, and corn—after the commerce ministry branded Trump’s March 4 hike “arbitrary and unilateral.” The warning, paired with a faltering Chinese import economy, marks a sharp intensification of the U.S.-China trade war, sending global markets into a tailspin.
A Defiant Response to Trump’s Tariff Hike
Wang Yi’s pledge came three days after Trump’s tariff increase hit $550 billion in Chinese goods—steel, tech, and consumer items—effective March 4, building on his February 5 economic security memo. “The U.S. cannot suppress China’s rise with illegal duties,” Wang declared, accusing Trump of violating World Trade Organization rules.
The commerce ministry echoed this, hinting at “broader countermeasures” beyond the farm tariffs set for Monday, which already target $3 billion in U.S. exports like cotton and corn. Analysts speculate Beijing could hit U.S. energy, autos, or rare earths next—exports worth $50 billion annually—after its October 2024 duties on Canadian EVs showed its playbook.
Trump’s hike, paired with a one-month auto import reprieve for Canada and Mexico, aims to curb trade deficits and fentanyl flows, but China sees it as a provocation. State-run Xinhua called it “economic coercion,” while Wang praised Canada’s tariff defiance—Ontario’s March 5 Starlink cut—as a model. “We’ll respond in kind and more,” he warned, leaving room for talks but signaling no retreat from China’s $405 billion U.S. trade surplus (2023 data).
Economic Fallout and Strategic Leverage
China’s retaliation threat follows a grim economic snapshot: Reuters reported Friday that January-February imports shrank—rare earths down 24%, copper off 7%—as Trump’s tariffs bite into its recovery from a property slump.
The 20% duties, doubling Biden-era rates, threaten China’s $154 billion in annual U.S. exports, per U.S. Census figures, with state media noting factories face “severe strain.” Saturday’s 100% canola tariffs on Canada—effective March 20—show Beijing’s willingness to widen the fight, pressuring U.S. allies as imports of U.S. soybeans (down 15% in 2024) already wane.
The U.S. feels the heat too: the Dow dropped 300 points Friday, and farm states brace for China’s March 10 tariffs, recalling 2018’s $13 billion hit, per USDA estimates.
Trump shrugged off the warning on Truth Social, calling China’s bluff “pathetic” and hinting at further hikes—possibly the 250% dairy tariffs floated March 7. Posts on X, like @HuXijin_GT’s “America will pay,” reflect Beijing’s resolve, buoyed by $1 trillion in U.S. Treasury holdings as leverage.
A Trade War on the Brink
Wang’s vow, less than a week after Trump’s Crypto Summit and Columbia funding cut, tests his multi-front agenda.
China’s commerce ministry urged dialogue but prepped for escalation, with Wang citing “reciprocal justice” as Trump’s April 2 tariff deadline looms.
Allies like the EU, facing their own China trade talks, urged calm, while Canada’s $155 billion retaliation plan emboldens Beijing’s stance. As markets reel—China’s CSI 300 fell 1.5% Saturday—the U.S.-China tariff clash teeters toward a broader showdown, with Wang’s “more” hinting at a punishing next move.
