How will China Retaliate to Trump's Tariffs

Beijing has vowed to fiercely resist if the United States implements its proposed tariffs exceeding 100% on Chinese goods. This comes as President Donald Trump pushes forward with a 10% universal tariff on all U.S. trading partners, effective since last weekend, claiming it’s already generated substantial revenue. China’s Commerce Ministry condemned the move as “unilateral bullying,” asserting that such “reciprocal tariffs” lack justification. A spokesperson warned that any escalation would prompt resolute countermeasures to protect national interests, signaling China’s readiness to endure a prolonged trade standoff. Meanwhile, Trump has criticized China’s retaliatory 34% tariff hike, calling it an overreach by a nation he deems the biggest trade abuser.

The ripple effects of Trump’s tariff policy have jolted Asian markets, with Taiwan’s shares plummeting 10% in a single day—a record drop—while China’s Shanghai Composite Index fell 7%, its worst performance in five years. Hong Kong’s Hang Seng saw a staggering 13% decline, the steepest since 1997, and Japan’s Nikkei 225 hit a 1½-year low after shedding 7.8%. South Korea’s Kopsi dropped 5.6%, reflecting widespread panic. Analysts attribute the turmoil to tariffs exceeding expectations from Trump’s first term, prompting China to engage U.S. firms like Tesla directly to mitigate damage. Despite the chaos, Chinese state media remains defiant, touting the nation’s economic resilience and reduced reliance on the U.S. market as buffers against this “tariff bullying.”

While China flexes its economic muscle, other Asian countries are opting for diplomacy over tit-for-tat tariffs. Japan is dispatching a team to Washington to tackle a 25% auto import tariff, with Prime Minister Shigeru Ishiba voicing concerns over investment impacts. Vietnam and Taiwan have offered zero-tariff deals as bargaining chips, while Thailand plans to boost U.S. imports to offset a 36% levy. Cambodia seeks a delay, and Indonesia leans on talks rather than retaliation, buoyed by its lower export dependence. Over 50 nations have reached out to Trump’s team, hoping to secure exemptions before the April 9 deadline, though his unpredictable stance keeps outcomes uncertain. Experts suggest this could inadvertently boost China’s regional influence as the U.S. risks alienating allies.