China vows to ‘fight to the end’ as Trump tariff war rages
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The US threats were “a mistake on top of a mistake”, said a Chinese official.
PHOTO: AFP
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BEIJING – China vowed not to bow to “blackmail” from the United States as a global trade war ignited by US President Donald Trump’s sweeping tariffs showed little sign of abating on April 8, even as battered stock markets steadied.
The rebuke came after Mr Trump threatened to ratchet up tariffs Beijing’s decision to match “reciprocal” duties
“The US side’s threat to escalate tariffs against China is a mistake on top of a mistake, once again exposing the American side’s blackmailing nature,” China’s Commerce Ministry said in a statement.
“If the US insists on going its own way, China will fight it to the end.”
The European Union proposed counter-tariffs of its own to Mr Trump’s tariff onslaught that swept up dozens of countries, sent financial markets into a tailspin and fuelled expectations that the global economy may be headed for recession.
Stock markets appeared to find a firmer footing after a gut-wrenching few days for investors which prompted some business leaders, including those close to Mr Trump, to urge the President to reverse course.
Japan’s Nikkei index rose 6 per cent on April 8, rebounding from a 1½-year low hit in the previous session, after Mr Trump and Japanese Prime Minister Shigeru Ishiba agreed to open trade talks
US Secretary of State Marco Rubio also spoke to his Pakistani counterpart about tariffs and future trade relations.
Chinese blue chips climbed 1 per cent, recouping a fraction of the more than 7 per cent slide on April 7. Hong Kong’s Hang Seng Index jumped 2 per cent after suffering the worst day since 1997 as a result of what the trading hub’s leader called “ruthless” tariffs.
US stock futures also pointed higher after a roller-coaster session in which it touched its lowest level in more than a year.
Indonesia’s markets were slammed, however, with stocks shedding 9 per cent and the rupiah ploughing a record low as trading resumed on April 8 after an extended holiday. Its central bank pledged to intervene, joining efforts by other global authorities to stem the rout in recent days.
Mr Trump said the tariffs – a minimum of 10 per cent for all US imports, with targeted rates of up to 50 per cent – would help the United States recapture an industrial base that he says has withered over decades of trade liberalisation.
“It’s the only chance our country will have to reset the table. Because no other president would be willing to do what I’m doing, or to even go through it,” he told reporters at the White House.
Europe eyes countermeasures
The European Commission, meanwhile, proposed counter-tariffs of 25 per cent on a range of US goods, including soya beans, nuts and sausages, though other potential items like bourbon whiskey were left off the list, according to a document seen by Reuters.
Officials said they stood ready to negotiate a “zero for zero” deal with Mr Trump’s administration.
“Sooner or later, we will sit at the negotiation table with the US and find a mutually acceptable compromise,” EU trade commissioner Maros Sefcovic said at a news conference.
The 27-member bloc is struggling with tariffs on vehicles and metals already in place, and faces a 20 per cent tariff on other products on April 9. Mr Trump has also threatened to slap tariffs on EU alcoholic drinks.
Investors and political leaders have struggled to determine whether Mr Trump’s tariffs are permanent or a pressure tactic to win concessions from other countries.
US Treasury Secretary Scott Bessent met Mr Trump in Florida on April 6, Politico reported, to urge him to emphasise striking trade deals with partners to reassure the markets that there is an endgame to the US strategy.
Administration officials say dozens of other countries have reached out with the hope of heading off the tariffs due to take effect on April 9.
Trump administration officials say the President is following through on a promise to reverse decades of trade liberalisation that he believes has undercut the US economy.
“He’s doubling down on something that he knows works, and he’s going to continue to do that,” White House economist Kevin Hassett said on Fox News.
“But he is also going to listen to our trading partners, and if they come to us with really great deals that advantage American manufacturing and American farmers, I’m sure he’ll listen.”
Business leaders baulk
Wall Street leaders issued warnings on US tariffs, with JPMorgan Chase chief executive Jamie Dimon saying they could have lasting negative consequences, while fund manager Bill Ackman said they could lead to an “economic nuclear winter”.
Mr Ackman is one of a handful of Trump supporters who questioned the strategy. Billionaire Elon Musk, who is leading Mr Trump’s effort to slash government spending, called for zero tariffs between the US and Europe over the weekend.
Mr Musk has also appealed directly to Mr Trump to reverse the tariffs, the Washington Post reported.
On April 7, Trump trade adviser Peter Navarro dismissed the Tesla chief executive as a “car assembler”
Investors are now betting that the growing risk of recession could prompt the US Federal Reserve to cut rates as early as May. Mr Trump repeated his call for the central bank to lower rates on April 7, but Fed chief Jerome Powell has so far indicated he is in no rush. REUTERS
