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China Threatens Retaliation Over Trump’s Tariffs Amid Trade War

China Threatens Retaliation Over Trump’s Tariffs Amid Trade War/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ China has renewed its threats to retaliate after President Donald Trump imposed 10% tariffs on Chinese imports, citing fentanyl production and trade imbalances. Beijing rejects U.S. claims, insists it is tough on drugs, and warns of economic fallout. The World Trade Organization (WTO) could soon review China’s legal challenge against the tariffs.

President Donald Trump speaks to reporters next to Air Force One after arriving back at Joint Base Andrews, Md., Sunday, Feb. 2, 2025. (AP Photo/Ben Curtis)

China’s Response to Trump’s Tariffs: Quick Looks

  • China vows “necessary countermeasures” in response to U.S. import taxes.
  • Beijing rejects claims that it allows fentanyl production for U.S. drug markets.
  • Trump cites trade imbalances & illegal migration to justify the tariffs.
  • China plans to challenge the U.S. at the WTO, calling the tariffs unlawful.
  • U.S. tariffs could push American consumers to “buy American”, impacting Chinese exports.
  • China’s economy faces slow growth, raising stakes for President Xi Jinping.
  • Trump signals further economic measures, escalating the U.S.-China trade war.

China Threatens Retaliation Over Trump’s Tariffs Amid Trade War

China’s Response to Trump’s Tariffs: Deep Look

China Threatens Economic Retaliation

China has reaffirmed its intent to retaliate against President Donald Trump’s latest round of tariffs on Chinese imports, which he claims will curb fentanyl production and reduce trade imbalances.

In a Foreign Ministry statement Sunday, Beijing condemned the tariffs as a violation of WTO rules, urging the U.S. to reverse its decision.

“China calls on the United States to correct its wrongdoings, maintain the hard-won positive dynamics in counternarcotics cooperation, and promote a steady, sound and sustainable development of China-U.S. relations.”

Despite this strong rhetoric, China has not yet specified how it will retaliate, though it has vowed to take “necessary countermeasures.”

U.S. Accuses China of Fentanyl Production—China Rejects the Claim

Trump’s justification for the new tariffs includes accusations that China allows the production of fentanyl precursor chemicals, which are then smuggled into the U.S. via Mexico.

China vehemently denies the allegation, insisting that it enforces strict anti-drug laws and has executed individuals involved in drug trafficking.

“The United States needs to view and solve its own fentanyl issue in an objective and rational way.” – China’s Foreign Ministry

Experts note that fentanyl overdoses claim 70,000 U.S. lives annually, making it a major political issue for Trump. However, China argues that America must take responsibility for its domestic drug crisis rather than imposing punitive tariffs on foreign nations.

China to File WTO Complaint Against U.S. Tariffs

China has also announced plans to challenge the U.S. tariffs at the WTO, stating that Trump’s move violates global trade agreements.

  • China’s Commerce Ministry condemned the tariffs as an abuse of power.
  • Beijing sees Trump’s move as part of a larger U.S. strategy to weaken China’s economy.
  • A WTO ruling in China’s favor could pressure the U.S. to remove tariffs, though enforcement would be difficult.

Trump’s Trade War Targets More Than Just China

Trump’s tariffs on China come alongside new import taxes on Canada and Mexico, all linked to his policies on trade surpluses, fentanyl, and illegal immigration.

  • Canada & Mexico have already retaliated with their own tariffs on U.S. goods.
  • Trump warns that more U.S. allies could face tariffs if they don’t meet his demands.

How Will Tariffs Impact China’s Economy?

China, already dealing with slowing economic growth, faces major risks from Trump’s aggressive tariff policies:

  • The U.S. imported nearly $1 trillion in Chinese goods last year.
  • Higher tariffs could increase prices for American consumers, potentially driving them toward “Made in USA” alternatives.
  • China’s domestic economy remains fragile, as government stimulus measures have failed to boost long-term growth.
  • Foreign infrastructure projects, including Belt and Road Initiative investments, have added to China’s growing public debt.

Some experts believe economic stagnation in China could undermine President Xi Jinping’s broader geopolitical ambitions, including his push to strengthen China’s influence in the Indo-Pacific and eventually reunify Taiwan under Beijing’s rule.

Could China Retaliate with Its Own Tariffs?

While China has not yet imposed new tariffs on U.S. goods, retaliation could come in several forms:

  1. Tariffs on key American exports like agriculture and energy.
  2. Restrictions on U.S. businesses operating in China.
  3. Increased economic partnerships with U.S. rivals (e.g., Russia & Iran).
  4. Tighter control over supply chains, making it harder for U.S. firms to source goods from China.

Trump’s Next Move? More Tariffs Likely

With the trade war escalating, Trump has hinted that even more tariffs could be placed on European nations if they do not align with U.S. economic interests.

The European Union is already preparing for potential U.S. tariffs, warning that a full-scale trade war would benefit China over the long term.

“If the U.S. starts a trade war, the one laughing on the side is China.” – EU foreign policy chief Kaja Kallas

What’s Next? Key Takeaways

The U.S.-China trade war is heating up, and the economic fallout could be significant for both nations.

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