BEIJING — The U.S.-China trade conflict has entered a new and dangerous phase as Beijing outlines a multi-pronged strategy to respond to President Donald Trump’s announcement of sweeping 104 % tariffs on Chinese goods.
The Chinese Ministry of Commerce issued a sharply worded statement calling the U.S. tariffs “unjustified” and “blatant economic coercion,” accusing Washington of violating international trade norms. In response, China has announced a series of countermeasures set to be rolled out in the coming days and weeks.
Targeted Tariffs and Economic Pressure Points
China plans to impose retaliatory tariffs of up to 35% on a wide array of American imports valued at over $60 billion. These will primarily target U.S. agricultural products, energy resources (such as LNG and crude oil), automobiles, and key technology components. The new tariffs are scheduled to take effect on Thursday, April 10, mirroring the U.S. timeline.
In a strategic shift, Beijing is also preparing to blacklist certain U.S. firms deemed “unreliable entities” that are seen as cooperating with the new U.S. trade restrictions. Affected companies may face operational hurdles in China, including stricter regulatory reviews, suspended licenses, and loss of access to procurement opportunities in the world’s second-largest economy.
Strengthening Domestic Resilience
In tandem with its punitive measures, China is stepping up efforts to insulate its domestic economy from prolonged trade friction. Key actions include:
- Boosting internal demand through infrastructure investment and consumer subsidies
- Diversifying import sources by strengthening trade ties with the EU, ASEAN, and Belt and Road partners
- Accelerating indigenous innovation in semiconductors, AI, and clean energy to reduce reliance on U.S. tech
“We will take all necessary steps to defend our economic sovereignty,” the Commerce Ministry declared, adding that the new tariffs are designed not just to retaliate, but also to realign China’s long-term trade strategy.
Markets on Edge
Global markets have responded with volatility. The Shanghai Composite Index fell 2.9% on Tuesday, while Wall Street futures turned negative amid investor fears of a prolonged trade standoff. Economists warn that escalating tariffs between the two largest economies could shave off global growth by as much as 0.5% this year if no resolution is found.
Diplomatic Door Not Closed
Despite the escalation, Beijing has not ruled out dialogue. Chinese Foreign Ministry officials confirmed that backchannel communications remain open, though formal negotiations have stalled. Analysts believe that both sides may wait for domestic political milestones—such as the upcoming U.S. election cycle—before considering meaningful compromise.
Outlook: Prolonged Uncertainty, Strategic Shifts
As the U.S. doubles down on protectionist trade policies, China is moving swiftly to both retaliate and reorient. While a near-term resolution appears unlikely, the long-term implications are clear: the era of stable U.S.-China trade relations has given way to one defined by strategic rivalry, policy decoupling, and economic realignment (zai)