China’s response to the recent tariffs enacted by U.S. President Donald Trump has been firm, stating that “the market has spoken” in rejecting these trade measures. The fallout from the tariffs, which included a significant selloff in global markets, has led China to call for “equal-footed consultation” with the United States. The state-run Xinhua news agency further emphasized that the U.S. should stop using tariffs as a means to undermine China’s economy and trade. In Hong Kong, Financial Secretary Paul Chan made it clear that the city would refrain from implementing its own countermeasures, emphasizing the importance of maintaining an environment that remains “free and open.” The notion of the market voicing its discontent was echoed by Chinese foreign ministry spokesperson Guo Jiakun, who shared insights on social media regarding the noticeable drops in U.S. markets following the tariff announcements.
Trump’s recent imposition of an additional 34% tariff on Chinese goods, coupled with earlier levies, has brought the cumulative duties on China to a staggering 54%. This prompted immediate retaliatory actions from China, which included imposing similar tariffs on U.S. goods and limitations on exports of some rare earth materials, thereby escalating tensions between the two largest economies globally. The global stock markets have experienced severe declines in the wake of these developments. Following Trump’s remarks affirming his stance on tariffs, the S&P 500 fell by 9% for the week, marking significant losses reminiscent of the early pandemic period.
In light of these events, China reiterated its commitment to safeguarding its sovereignty and economic interests, claiming that the actions of Washington undermine the rules-based multilateral trading system. Chambers of commerce across various industries in China have condemned the U.S. tariffs, with calls for cooperation within the domestic food and agricultural sectors. Meanwhile, Hong Kong’s Chan reinforced the territory’s dedication to free trade and the importance of a stable economic environment.