In a passionate declaration, China’s Finance Ministry accused the United States of “bullying” tactics, warning that it risks becoming a “laughingstock” on the global stage.
The statement criticized the US for its “arbitrary imposition of excessively high tariffs” on China, claiming it severely breaches international economic and trade regulations, undermines the post-World War II economic framework established by the US, and contradicts fundamental economic principles and common sense. It labeled these actions as outright unilateral bullying and coercion.
The ministry further asserted that even if the US persists in raising tariffs, such measures will lose their economic rationale and ultimately be viewed as a farce in the annals of global economics.
The new tariffs are scheduled to take effect on Saturday, with the ministry indicating that it would refrain from implementing additional tariff hikes in response to any US retaliation.
“If the US continues its tariff game, China will simply disregard it,” the statement concluded.
Earlier, China announced a tariff rate of 84% on US imports, a level that was established on Wednesday. Meanwhile, the White House clarified on Thursday that the total tariff rate imposed on China stands at 145%, rather than the previously reported 125%.
Neither Side Appears Ready to Relent.
Analysts from Deutsche Bank noted in a report on Friday that the disparity between the two figures is “insignificant in any practical economic context.” However, they observed that the markets are responding to a growing separation between the two largest economies in the world.
“Both the US and China are demonstrating no inclination to back down, with President Trump expressing confidence in his tariff strategy yesterday, despite acknowledging possible ‘transition issues,'” the analysts remarked.
Earlier in the week, Trump revealed plans to suspend a significant portion of his tariffs for 90 days, although many—including those on China—remained active.
Mark Haefele, chief investment officer at UBS Global Wealth Management, stated on Friday that the president’s readiness to adjust his tariff position in light of fluctuations in the equity and bond markets indicates a degree of responsiveness to market instability.
“Certainly, the substantial tariffs on China will lead to economic disruption if they persist,” he noted. “However, while there are still downside risks, we believe the likelihood of a more severe economic downturn is now considerably reduced.”
On Truth Social, Trump commented on Wednesday: “At some point, hopefully soon, China will come to understand that the era of taking advantage of the U.S.A. and other countries is no longer viable or acceptable.”
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Stock Markets Experience High Fluctuations
The Trump administration projected that the US faced a trade deficit of $295 billion with China in 2024, with imports from China totaling $440 billion and exports to China amounting to $145 billion.
China’s recent announcement of additional retaliatory tariffs had a varied effect on European stocks, though it was less pronounced than earlier fluctuations in the week.
By around 1:30 p.m. local time (7:30 a.m. ET), Germany’s DAX had decreased by 1.5%, while Britain’s FTSE 100 saw a rise of approximately 0.4%. The broader Stoxx 600 index in Europe fell by 0.6%.
US futures showed slight gains, with the Dow, S&P 500, and Nasdaq all expected to open up by about 0.2%.
Japan’s Nikkei 225 dropped nearly 3% by the close of trading, and South Korea’s Kospi declined by 0.5%.
“Both China and the US have communicated clearly that further tariff increases are unwarranted,” stated Zhiwei Zhang, president and chief economist at Pinpoint Asset Management, in a note on Thursday.
“The next phase involves monitoring and assessing the impact on economic activities in both the US and China,” he added.
