Politics
China Promises Retaliation Against U.S. Tariffs: Economic War on the Horizon
Economic war is threatened by US tariffs, retaliation promised on China’s part
Tensions between the United States and China are escalating as Beijing pledges a fierce response to new U.S. tariffs, signaling the potential for a full-blown economic war. On March 7, 2025, during a press conference where China’s Foreign Minister Wang Yi addressed the annual session of parliament, he warned the U.S. for arbitrary tariffs with goodwill reciprocated with hostility. Currently, the Trump administration is executing further trade measures by doubling tariffs on Chinese imports to an arbitrary 20 percent, which Beijing claims will retaliate against.
This latest tariff hike is adding to the recent downturn of events for the battling world’s two largest economies since the tit-for-tat began in January 2025, when President Donald Trump returned to office. China retaliated instantly by placing a further 15 percent duty on U.S. imports of such items like chicken, pork, soy, and beef while enforcing stricter regulations on American businesses within its borders. Wang Yi criticized the U.S. for prioritizing economic self-interest over global cooperation, warning that such policies could plunge the world into a “law of the jungle” where smaller nations suffer most.
The obstinate message was echoed on social media, X, by the embassy: “If war is what the U.S. wants-be it a tariff war, trade war, or any other type-we’re ready to fight till the end“. In spite of this brave rhetoric, Beijing has an unwavering standing against U.S. pressure while it reassures its fellow compatriots of economic durability during the heat of growing conflict. The theory put forth by Wang, that China had offered help to the framed U.S. with the fentanyl crisis, was met with sanctions instead of gratitude, all adding to the current standoff.
The economic stakes are unimaginable, with U.S. tariffs mainly aimed at checking Chinese imports, though experts warned they might create havoc in global markets, increase consumer prices, and adversely affect developing economies caught in between. On the other hand, China is leaning on its powers as the strongest manufacturing player to retaliate, with its leaders reiterating self-sufficiency and domestic growth. This retaliation is following a pattern: the U.S. advancing tariffs to 20% on all Chinese goods and China countering with its own selective duties and limitations on corporations, all suggesting a readiness for extended confrontation.
What’s next for this brewing economic war?
Analysts predict further escalation unless diplomatic channels reopen. Wang Yi urged the U.S. to reconsider its approach, warning of severe shocks to the international order if tensions persist. For now, China’s leaders are projecting confidence, banking on their economic might to weather the storm. As both nations dig in, the world watches anxiously, bracing for the ripple effects of this high-stakes showdown.