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China again vowed to "fight to the end" and asserted that U.S.-China trade is already balanced in a policy statement published Wednesday after Trump’s unprecedented 104% tariffs on Chinese goods took effect.
Its government did not comment on whether it plans to enter negotiations with the White House, as several other countries have begun talks.
"If the U.S. insists on further escalating its economic and trade restrictions, China has the firm will and abundant means to take necessary countermeasures and fight to the end," the Ministry of Commerce said in a statement accompanying the white paper.
The paper says that the U.S. has not honored the promises it made in the phase 1 trade deal concluded during Trump’s first term. As an example, it said that a U.S. law that would ban TikTok unless it is sold by its Chinese parent company violates a promise that neither would "pressure the other party to transfer technology to its own individuals."
Last week, Trump signed an order granting TikTok a 75-day reprieve after a potential sale to U.S. buyers was put on hold. ByteDance representatives contacted the White House to indicate that China would not approve the deal unless trade and tariff talks were held first.
The white paper also claimed that when factoring in trade in services and U.S. companies’ domestic Chinese branches, economic exchange between the two countries is "roughly balanced."
According to the document, China recorded a $26.57 billion trade in services deficit with the U.S. in 2023, which is composed of sectors such as insurance, banking, and accounting. While Trump’s tariffs aimed to narrow trade deficits, they only accounted for the exchange of physical goods.
"History and facts have proven that the United States’ increase in tariffs will not solve its own problems," said the statement from the Chinese commerce ministry. "Instead, it will trigger sharp fluctuations in financial markets, push up U.S. inflation pressure, weaken the U.S. industrial base and increase the risk of a U.S. economic recession, which will ultimately only backfire on itself."
China vowed to take resolute and effective measures to safeguard its rights and interests, after Trump's 104% duties on Chinese imports kicked in.
At a regular press conference on Wednesday, Chinese foreign ministry spokesperson Lin Jian said the U.S. continued to misuse tariffs to pressure China.
"China firmly opposes this and will never accept this kind of bullying," he said.
He added that if the U.S. genuinely seeks to resolve the issue through dialogue, it should adopt an attitude of equality, respect and mutual benefit.
Garment manufacturers and exporters in Bangladesh, the world’s second largest after China, are worried about losing its share in the apparel market of the United States, which is imposing new tariffs of 37%, according to AP.
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Factory workers operate machines to make garments at UHM Ltd. in Narayaganj, Bangladesh, Tuesday, April 8, 2025. Photo by AP |
The U.S. is Bangladesh’s largest market as a single destination where the country’s nearly $39 billion industry exported apparel goods worth $7.34 billion in 2024.
Now, Bangladesh’s manufacturers say their U.S. buyers are halting orders, which could help competitors like India and Pakistan overtake Bangladesh in the U.S. market.
The sector employed about 4 million workers, mostly women from rural areas, and the industry accounts for about 80% of the country’s total annual exports.
Bangladesh has already sought postponement of the application of the new tariff for three months to help the country assess the situation and smoothly implement its initiatives.
South Korea has launched an emergency funding program worth 3 trillion won ($2 billion) to help its automobile industry cope with the impact of increased tariffs imposed by the Trump administration, AP reported.
The government package announced on Wednesday includes expanded low-cost financing from state-run lenders, as well as a new financing program backed by auto giants Hyundai and Kia, along with financial institutions, aimed at supporting struggling carmakers and auto parts manufacturers. The government will also expand subsidies for electric vehicle purchases.
Cars and auto parts stand as South Korea’s top export items to the United States, with the former generating $34.7 billion and the latter $8.2 billion last year.
Asian shares sank again on Wednesday as the latest set of U.S. tariffs, including a 104% levy on Chinese imports, went into effect, according to AP.
The sharply higher tariffs kicked in after midnight Eastern time in the U.S., even as investors have no idea what to make of President Donald Trump’s trade war.
On Tuesday, the S&P 500 dropped 1.6% after wiping out an early gain of 4.1%. That took it nearly 19% below its record set in February. The Dow Jones Industrial Average dropped 0.8%, while the Nasdaq composite lost 2.1%. Uncertainty is still high about what President Donald Trump will do with his trade war.
More swings up and down for financial markets are excepted given the uncertainty over how long Trump will keep the stiff tariffs on imports, which will raise prices for U.S. shoppers and slow the economy. If they last a long time, economists and investors expect them to cause a recession. If Trump lowers them through negotiations relatively quickly, the worst-case scenario might be avoided.
In response to President Donald Trump’s tariffs, Canada says it’s implementing retaliatory tariffs of its own just after midnight on Wednesday, AP reported.
Canada will put a 25% tariff on auto imports from the United States that do not comply with the USMCA, the 2019 North American trade pact put into place during Trump’s first term.
The Canadian government is also putting in a framework to bolster auto production and investment in its country as well as providing a special exception on tariff countermeasures for residents of Campobello Island, New Brunswick.
Trump has issued an executive order increasing tariffs on low-value packages sent from China to the United States through the international postal system, tripling the previously announced rates, CNBC reported.
The original tariff on shipments valued under US$800 was set at 30% of the package's value or $25, effective May 2.
The revised rate raises the tariff to 90% of the value or $75, with a further increase to $150 after June 1.
Shipments worth less than $800, also known as de minimis packages, had been exempt from tariffs until this year.
U.S. President Donald Trump's latest round of sweeping tariffs officially took effect, escalating the global trade war with unprecedented measures, according to AFP.
Following the imposition of sweeping 10% tariffs that has rocked the global economy since coming into force over the weekend, rates on imports to the United States from exporters like the European Union or Japan rose further at 12.01 am (0401 GMT) Wednesday.
China -- Washington's top economic rival but also a major trading partner -- is the hardest hit, with tariffs imposed on its products since Trump returned to the White House now reaching a staggering 104%.
Trump said Tuesday his government was working on "tailored deals" with trading partners, with the White House saying it would prioritize allies like Japan and South Korea.
Trump told a dinner with fellow Republicans on Tuesday night that countries were "dying" to make a deal. "I'm telling you, these countries are calling us up kissing my ass," he said.
But Beijing has shown no signs of standing down, vowing to fight a trade war "to the end" and promising countermeasures to defend its interests.
China's retaliatory tariffs of 34% on U.S. goods are due to enter in force on Thursday.
The U.S. president believes his policy will revive America's lost manufacturing base by forcing companies to relocate to the United States.
But many business experts and economists question how quickly -- if ever -- this can take place, warning of higher inflation as the tariffs raise prices.
Trump said Tuesday the United States was "taking in almost $2 billion a day" from tariffs.
He originally unveiled a 34% additional tariff on Chinese goods.
But after China countered with its own tariff of the same amount on American products, Trump piled on another 50% duty.
Counting existing levies imposed in February and March, that would take the cumulative tariff increase for Chinese goods during Trump's second presidency to 104%.
