China Vows to ‘Fight to the End’ as US Threatens 104% Tariffs in High-Stakes Trade Showdown

[CharlieH]

 

The U.S.-China trade war has escalated to unprecedented levels, with President Trump threatening to impose 104% tariffs on Chinese imports unless Beijing withdraws its 34% retaliatory duties by Wednesday. China has responded with tariffs, export bans on critical minerals, and market interventions, signalling a readiness to endure economic pain rather than concede.

 

Key Developments:

• Tariff Math: Current U.S. duties stand at 54% (10% in March + 34% in April hikes + pre-existing 10%), with Trump’s 50% threat pushing totals to 104% on $500bn+ in annual imports.

• China’s Countermeasures: Imposed 34% tariffs, restricted rare earth exports (critical for tech/defence), and weakened the yuan to boost export competitiveness. State-backed entities bought stocks to stabilise markets.

• Market Chaos: Hang Seng plunged 13% Monday—its worst drop in decades—while S&P 500 fell 2.4%. Asian markets partially rebounded Tuesday.

 

Strategic Responses:

• China’s Pain Tolerance: Experts say Beijing will endure economic strain to avoid capitulating to “U.S. aggression,” despite a slowing economy, property crisis, and weak consumer spending.

• U.S. Goals: Trump aims to erase a disputed $350 bn trade deficit through tariffs and energy exports, though economists question the figure’s accuracy.

 

What’s Next?

• Wednesday Deadline: Trump’s 50% tariff takes effect unless China backs down—a scenario analysts deem unlikely.

• Retaliation Escalation: China may expand rare earth bans to lithium and target U.S. tech firms, while the U.S. prepares 46-49% tariffs on Vietnam/Cambodia to counter trans-shipment.

 

Expert Analysis:

• Mary Lovely (Peterson Institute): “This is a game of who can bear more pain—there’s no mutual gain left.”

• Alfredo Montufar-Helu (The Conference Board): “China won’t back down. We’ve reached a long-term impasse.”

• Andrew Collier (Harvard): “Xi faces dwindling resources as exports—a key growth driver—take a hit.”

 

Global Implications:

• Decoupling Accelerates: Apple may shift 20% of iPhone production to India/Vietnam.

• Recession Risks: Analysts warn China’s GDP could drop 1-2% annually under sustained tariffs, with global supply chains fracturing.

 

Bottom Line:

The conflict has moved beyond tariffs to a strategic battle over critical resources and tech dominance, with neither side willing to yield.

 

 

Based on a report from BBC

 

09.04.2025

[faraday]

Someone thinks his is bigger..

🤣

[sammieuk1]

Trump has just spoken about the late great Hannibal lecter! looks like Xi' will be on the menu after the cats,dogs, and penguins  🤔

[Woke to Sounds]

10 minutes ago, sammieuk1 said:

Trump has just spoken about the late great Hannibal lecter! looks like Xi' will be on the menu after the cats,dogs, and penguins

 

Pangolins buddy.

 

Trade war is a 1000% psyop to soften up the plebs for a much degraded standard of living to 2030.

 

'U vill own nuthing and be happpppyyy!'

 

💯0

[ExpatOilWorker]

China 🇨🇳 will have a lot of fighting hands with all the closed down factories. Historically the Chinese engage in civil war before they venture outside their own borders. 🍿 🍿 🍿 🍿  time.

[Eric Loh]

1 hour ago, CharlieH said:

China’s Pain Tolerance: Experts say Beijing will endure economic strain to avoid capitulating to “U.S. aggression,” despite a slowing economy, property crisis, and weak consumer spending.

 

China political system and the nationalistic population will have the edge over Trump’s insane tariff war.