Asian Markets Surge as China Promises to “Fight to the End” Against Trump’s New Tariff Threat | US News
China has warned it will “firmly implement countermeasures” in retaliation to Donald Trump’s proposal of an additional 50% tariff on imports from China.
According to a statement from the Commerce Ministry, the US’s enforcement of “so-called ‘reciprocal tariffs'” on China is deemed “entirely unfounded and represents typical unilateral bullying behavior.”
The statement suggested that further retaliatory tariffs might be imposed in the future.
“The measures China employs are intended to protect its sovereignty, security, and development interests, as well as to uphold the normal international trade order. They are completely justifiable,” the ministry emphasized.
“The US’s threat to intensify tariffs on China constitutes yet another error and highlights the coercive nature of the US. China will never concede to this. If the US continues on its chosen path, China will stand firm until the end.”
Trump tariffs: Keep up with the latest updates
Mr. Trump’s warning, issued via social media, was made after China announced its plans to retaliate against US tariffs declared last week.
“If China does not retract its 34% increase in response to their longstanding trading abuses by tomorrow, April 8th, 2025, the United States will impose ADDITIONAL Tariffs on China of 50%, effective April 9th,” he posted on Truth Social.
“Moreover, all discussions with China regarding their requested meetings will be canceled!”
If Mr. Trump goes ahead with these plans, US tariffs on imports from China could reach a staggering total of 104%.
This new tax would be in addition to the 20% tariffs enacted as punishment for what the President perceives as China’s involvement in the US fentanyl crisis, along with the previously announced 34% tariffs from last week.
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Asian markets show an uptick
This comes as Asian markets opened positively on Tuesday.
Japan’s Nikkei 225 index surged by 6% after dropping nearly 8% the previous day, with the broader Topix also up 6.8%.
The US semiconductor index increased by 2.7% overnight, while S&P and Nasdaq futures each gained more than 1% during Asian trade. South Korea’s Kospi rose by 2%, and markets in Australia and New Zealand also saw increases.
Analysis: Tariffs could signal one of the most difficult periods in modern history
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Most US markets decline
Asian markets experienced significant declines on Monday, with stocks in Hong Kong dropping by 13.2%, marking the steepest fall since 1997 during the Asian financial crisis.
The majority of US markets were down on Monday, with the S&P 500 closing the day down by 0.23%, while the Dow Jones Industrial Average finished down 0.91% — although the Nasdaq ended on a positive note, rising by 0.10%.
The UK’s main stock index, the FTSE 100, closed down by 4.38%, one of the most significant drops in years, akin to market reactions seen in the early days of COVID-19 lockdowns, albeit less severe than the 4.95% drop observed on Friday.
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‘We can’t continue to be the naive ones’
Mr. Trump has eliminated any possibility of halting his extensive tariffs as of Monday evening, stating: “We’re not considering that.”
He stated that countries affected by these tariffs have been in negotiations with his administration, which intends to create “fair agreements” with each nation.
“We aim to secure just deals with every country, and if we don’t, they will not be allowed to engage with the US,” he remarked.
Mr. Trump also asserted that the US has been taken advantage of by numerous countries throughout the years, adding: “We can’t afford that any longer. We cannot be the foolish ones anymore.”
