China Hits Back: “We’re Ready” for Trump’s 104% Tariff War

Beijing – China has vowed to stand its ground after U.S. President Donald Trump announced an unprecedented 104% tariff on all Chinese imports, reigniting fears of a full-scale global trade war.

In a strong and immediate response, Chinese Premier Li Qiang declared that Beijing is “equipped to fully offset” the economic fallout of Washington’s aggressive measures. He also reaffirmed the Chinese government’s commitment to long-term economic stability and global cooperation.

Speaking in a call with European Commission President Ursula von der Leyen, Li emphasized that China’s 2025 macroeconomic policy had already factored in a range of geopolitical uncertainties, including potential foreign trade disruptions. His comments were seen as a direct message to global markets and trading partners: China is ready.

The Tariff Escalation: How We Got Here

The announcement came after weeks of rising tensions between Washington and Beijing. Trump’s initial move was a 34% tariff on Chinese goods, intended as a show of economic strength and a campaign promise fulfillment.

Beijing swiftly responded with its own 34% counter-tariff targeting American products ranging from agricultural goods to consumer electronics. Rather than de-escalate, the Trump administration doubled down, adding another 50% in levies – bringing the total cumulative tariff rate on Chinese goods to a staggering 104% during his second term.

Counting earlier increases in February and March, the new policy represents one of the most aggressive trade positions ever taken by a U.S. president in modern history.

Beijing’s Calculated Response

Beijing's messaging was clear: this is not just about China—it’s about protecting the integrity of global trade.

Premier Li described the move as “unilateral, coercive, and protectionist”, adding that it defies the principles of international commerce. He stressed that China’s economic strategy in 2025 includes robust safeguards, such as stimulus tools, diversified trade networks, and increased domestic consumption, to absorb external shocks.

The Chinese government also stated that any response would be “measured but firm,” indicating a willingness to retaliate but without inflaming tensions beyond necessity.

Global Markets React: Volatility and Retaliation

The market response was immediate and volatile. Global indexes tumbled on Tuesday following Trump’s announcement. Analysts warned of mounting fears of inflation, supply chain disruptions, and even a potential global recession.

In the U.S., businesses across key sectors – especially retail, technology, and manufacturing – have voiced concerns over the sudden cost hikes. Several American trade groups have already urged the administration to reconsider.

Meanwhile, other countries impacted by Trump’s tariff blitz have begun preparing their own responses:

• Canada has announced retaliatory tariffs on U.S. auto imports, effective Wednesday.

• The European Union is considering countermeasures in response to a 20% U.S. tariff hike on EU goods, with details expected in the coming week.

• French President Emmanuel Macron called on Trump to pause and reconsider, but added that if Europe must respond, “so be it.”

The EU is reportedly drafting a package of retaliatory duties, potentially targeting U.S. agricultural exports, tech components, and consumer products.

Trump’s Trade Strategy: “Tailored Deals” and Tough Talk

Despite rising criticism at home and abroad, President Trump has defended his actions as necessary to bring back American jobs and manufacturing. Speaking at a press event on Tuesday, he claimed that the U.S. is “taking in almost $2 billion a day” through tariff collections.

The White House stated that it is working on “tailored deals” with key allies such as Japan, South Korea, and Israel – nations that have reportedly expressed willingness to negotiate lower tariffs. The administration also named Argentina and Vietnam as partners open to favorable adjustments in their trade terms with the U.S.

Trump’s top trade official, Jamieson Greer, told the Senate this week that the administration remains committed to its protectionist approach and will not pause or scale back its agenda, even amid Chinese retaliation and mounting global backlash.

What’s Next: Trade War or Strategic Realignment?

With both China and the U.S. digging in their heels, the possibility of a negotiated resolution appears increasingly remote – at least in the short term. Experts warn that prolonged conflict could further disrupt global supply chains, increase consumer costs, and trigger long-term economic realignments.

Beijing, for its part, is accelerating its pivot to non-U.S. trading partners, including deeper cooperation with BRICS nations, the EU, ASEAN, and Latin America. There are also indications that China may increase its reliance on domestic innovation and high-tech industries, to reduce dependency on Western markets.

At the same time, the U.S. faces a test of how far it can push its economic leverage before allies begin drifting away—or push back too hard.

As the world watches, the stakes couldn’t be higher.