China said it would “fight to the end” and take countermeasures against the United States to safeguard its own interests after President Donald Trump threatened an additional 50% tariff on Chinese imports.
The Commerce Ministry said the US‘ imposition of “so-called ‘reciprocal tariffs” on China is “completely groundless and is a typical unilateral bullying practice.” China, the world’s second-largest economy, has taken retaliatory tariffs and the ministry hinted in its latest statement that more may be coming.
“The countermeasures China has taken are aimed at safeguarding its sovereignty, security and development interests, and maintaining the normal international trade order. They are completely legitimate,” the ministry said.
“The US threat to escalate tariffs on China is a mistake on top of a mistake and once again exposes the blackmailing nature of the US. China will never accept this. If the US insists on its own way, China will fight to the end,” it added.
Trump’s threat of additional tariffs on China raised fresh concerns that his drive to rebalance the global economy could intensify a financially destructive trade war. Stock markets from Tokyo to New York have become more unstable as the tariff war worsens.
The S&P 500 plunged to its 11th worst 3-day drop in history, with figures more dire than those reported during World War 2 and the Covid-19 pandemic.
US stocks nosedived at Monday’s open as the fallout from Donald Trump‘s tariffs intensified, sending the stock market index into bear market territory. The S&P slumped 3.4% having earlier dipped as low as 4% – marking a 20% drop from February’s record high. It comes amid fears the impact of Donald Trump’s shock tariffs on international trade would trigger a global recession.
The Nasdaq Index fell 3.9%, while trading volumes surged as Wall Street continued to reel from Friday’s chaotic sell-off. The Dow Jones Industrial Average plummeted 1,191 points, or 3.1%, to 37,123.
Goldman Sachs’ warning of a US recession due to the trade war added to the turmoil, with President Trump showing no signs of backing down. Bloomberg reported Wall Street had lost 13% of its value since Thursday – the third-worst three-day slump on record, trailing only the early days of Covid-19 and the 2008 financial crisis.
Sir Keir Starmer warned the United States tariffs were “not a passing phase” as he visited Jaguar Land Rover’s West Midlands plant, but urged workers at the car maker to remain calm.
“This is a moment for cool heads, nobody wins from a trade war, you know that,” he said on Monday.
The luxury car maker has been hit by the US tariffs, with the Prime Minister insisting moves to ease the transition towards phasing out petrol and diesel cars was a “statement of intent” in backing Britain’s automotive industry.
And he said now is the time to “rise together as a nation” in the face of growing uncertainty. Mr Starmer told workers at the motoring giant – which will be hit by a 25% tariff on exports to the US: “Old assumptions that we’ve long taken for granted simply don’t apply any longer.” He said the US President’s measures are bad news for British business and would pose a “huge challenge”.
Donald Trump has ordered the world not to be “weak” and “stupid” despite economies across the globe being in freefall amid growing fears of a recession.
The US president took to Truth Social to insist the tariffs should have been done “decades” ago. His post came shortly before the markets opened in Wall Street today – when it was revealed US stocks had plummeted once again.
Trump’s post read: “The United States has a chance to do something that should have been done DECADES AGO. Don’t be Weak! Don’t be Stupid! Don’t be a PANICAN (A new party based on Weak and Stupid people!). Be Strong, Courageous, and Patient, and GREATNESS will be the result!”
Sir Keir Starmer will be questioned by senior MPs on Tuesday amid turmoil in global markets caused by US tariffs, which Donald Trump has insisted he will not pause.
The Prime Minister is expected to hold a Cabinet meeting of his most senior ministers in Downing Street on Tuesday morning, before he heads to Parliament, where he will appear before the Liaison Committee of senior parliamentarians on the last day the Commons sits before it heads into the Easter recess.
The global impact of Mr Trump’s tariffs is likely to be on the agenda for the committee, where Sir Keir may also be questioned about the war in Ukraine, conflict in the Middle East, and the US president’s announcement that America will hold direct talks with Iran about its nuclear programme.
As he spoke to reporters in the Oval Office on Monday, Mr Trump indicated he was not open to the idea of pausing tariffs to allow for negotiations with other countries.
The UK is among the nations arguing its case for a carve out from the trade tax on goods going into the US.
The President has imposed a 10% tariff on US imports of British goods, along with the 25% tariff on cars and separate import taxes for steel and aluminium.
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