China has vowed to stand firm in the face of the United States’ threatened 100 per cent tariff increase on Chinese goods, signalling a willingness to retaliate and refusing to bow to economic pressure. The announcement comes amid one of the most volatile phases in recent US–China trade relations, with both nations escalating rhetoric and policy moves.
Beijing’s reaction emphasises national sovereignty and economic resilience. Chinese officials warned that any punitive measures by Washington would invite a strong counter-response tailored to protect China’s interests. State media reported that China would not be intimidated by tariff threats and would use its own regulatory and trade tools to “defend fairness and justice.”
The US proposal, reportedly coming into effect from 1 November 2025, would raise aggregate duties on Chinese imports to approximately 130 per cent, especially targeting industrial inputs such as rare earth elements—materials critical to American defence, technology, and green energy sectors. Analysts suggest that such a move might backfire, pushing American buyers to diversify sourcing toward alternative markets.
China, however, appears ready for a stand-off. Observers believe Beijing could respond with its own import restrictions, supply chain realignments, and selective trade countermeasures. The standoff may also accelerate efforts by third countries, including India, to fill gaps in supply as US buyers seek alternatives.
As the week unfolds, markets and policymakers will closely monitor how Washington and Beijing navigate this escalating confrontation—and whether diplomacy can avert a full-blown trade conflict. |
