China Slams Trump’s Tariffs, Warns Trade War Will “End in Failure” for U.S

 Beijing/Washington April 10, 2025– Tensions between the world’s two largest economies escalated sharply on Thursday, as China denounced U.S. President Donald Trump’s intensifying trade war, warning it “will end in failure” for Washington. The strong response came just hours after Trump announced a dramatic hike in tariffs on Chinese imports, raising them to 125%.

Beijing swiftly retaliated with 84% tariffs on U.S. goods, effective T

hursday, and signaled it was bracing for a long standoff. “The US cause doesn’t win the support of the people and will end in failure,” Chinese Foreign Ministry spokesperson Lin Jian declared at a regular press briefing. “We are not interested in a fight but will not fear if the United States continues its tariff threats.”

Despite the tough rhetoric, China’s Commerce Ministry adopted a more measured tone, leaving open the possibility of negotiations. “The door to dialogue is open,” the ministry said. “We hope the US will meet China halfway, and, based on the principles of mutual respect, peaceful coexistence and win-win cooperation, properly resolve differences through dialogue and consultation.”

Trump’s latest tariff hike followed a high-stakes announcement on Wednesday in which he granted a 90-day pause on his steepest tariffs—capping them at 10%—for dozens of countries, excluding China. He accused Beijing of failing to withdraw its retaliatory measures, prompting what he called a necessary escalation. “At some point, hopefully in the near future, China will realise that the days of ripping off the USA and other countries is no longer sustainable or acceptable,” Trump said as he unveiled the new measures.

Asked by reporters about the possibility of a deal, Trump said, “China wants to make a deal, they just don’t know how quite to go about it. They’re proud people. President Xi [Jinping] is a proud man. I know him very well. They don’t know quite how to go about it but they’ll figure it out.”

China's response went beyond tariffs. It placed 18 U.S. companies on trade restriction lists and announced broader countermeasures in response to what Chinese media called a “liberation day” of global U.S. tariffs. The China Daily editorial board echoed official sentiments: “Caving in to the US pressure is out of the question for Beijing.” The editorial acknowledged the economic cost to Chinese exports and manufacturing, but emphasized that “kowtowing to the US’s tariff bullying will gain it nothing.”

The World Trade Organization issued a stark warning. WTO Director-General Ngozi Okonjo-Iweala said the escalating conflict could slash bilateral trade by as much as 80%, potentially shaking the global economic outlook. “These are two nations that represent around 3% of world trade,” she noted. “This dispute could severely damage the global economy.”

Chinese companies, particularly exporters selling on U.S. platforms like Amazon, are already preparing to raise prices or pull out of the American market altogether due to the “unprecedented blow” of the tariffs, according to China’s largest e-commerce association.

Despite the turmoil, markets responded positively to Trump’s limited reprieve. Wall Street soared, with the Nasdaq jumping 12.2%—its best day in 24 years—while the Dow surged nearly 8%. Asian markets followed suit: Taiwan’s TAIEX rose 9.2%, Japan’s Nikkei 225 gained 7.2%, South Korea’s Kospi climbed over 5%, and Australia’s ASX 200 jumped more than 6%. China’s Shanghai Composite Index also rose modestly, by 1.29%.

Trump downplayed concerns over market volatility. “Sometimes you have to take medicine,” he told reporters. However, he acknowledged the growing fears of a looming recession, which appeared to prompt his temporary softening on tariffs for other countries. “I thought that people were jumping a little bit out of line; they were getting yippy, you know,” Trump said.

Global responses to Trump’s tariff pause were cautiously optimistic. Japan’s chief government spokesperson, Yoshimasa Hayashi, said, “We received the latest US announcement positively,” while urging the U.S. to revisit tariffs on steel, aluminum, and auto parts. Meanwhile, EU member states prepared retaliatory 25% tariffs on up to $23 billion in U.S. goods, including agricultural products and goods from Republican strongholds, set to take effect next week.

China, meanwhile, is reportedly seeking to strengthen trade ties elsewhere. Commerce Minister Wang Wentao held talks with his Malaysian counterpart and EU trade officials, signaling a move to deepen cooperation and restart electric vehicle negotiations. However, attempts to engage Australia were rebuffed. “We’re not about to make common cause with China,” Australian Defence Minister Richard Marles said. “Our focus is on actually diversifying our trade.”

As the war of tariffs deepens, global markets and diplomatic channels remain on edge, with no clear resolution in sight.