 "‘Trade tyranny’: China urges world to unite against Trump for a unified response reciprocal tariffs")
The global economy has entered a volatile new phase after US President Donald Trump imposed sweeping tariffs on imports, especially targeting China with cumulative duties reaching 104 per cent. In response, China’s finance ministry announced an 84 per cent tariff on US imports, marking a sharp escalation in what many now call a historic trade war. Beyond economic retaliation, China has called for international unity against what it calls “trade tyranny”—a direct challenge to Washington’s protectionist policies.
Trump’s trade war
Trump’s tariff regime, which took full effect Wednesday, introduced a 10 per cent baseline tariff on nearly all imports into the US, with much higher rates on countries he called the “worst offenders”—Cambodia at 49 per cent, Vietnam at 46 per cent and Thailand at 36 per cent.
The White House justified the move as a way to rebuild American industry and restore economic sovereignty. However, international reactions have ranged from concern to direct retaliation. Major economies like the European Union have announced their own tariffs, and major corporations such as Walmart and Delta Air Lines have withdrawn earnings forecasts due to the growing uncertainty, also reported by NBC News.
Jamie Dimon of JPMorgan Chase warned of a possible US recession highlighting the economic risks of Trump’s strategy. Former treasury secretary Lawrence Summers echoed this concern, stating that the situation points to a “serious financial crisis wholly induced by US government tariff policy,” as reported by the South China Morning Post.
Impact Shorts
More ShortsChina’s economic counteroffensive
China’s response has been both strategic and multifaceted. Its immediate move—a sharp increase in tariffs on US goods from 34 per cent to 84 per cent—has been framed not just as economic retaliation but as a principled stand against unilateralism. A spokesperson from China’s foreign ministry condemned the US actions as “hegemonic and bullying practices,” according to the BBC.
At the same time, China rolled out a series of countermeasures targeting specific US interests. These include placing 18 American companies on its “unreliable-entity list” and enforcing export controls on dual-use items. China is also reportedly considering bans on Hollywood films and suspending cooperation on fentanyl control, signalling a broader geopolitical pullback, as reported by the South China Morning Post.
To reassure domestic audiences, Premier Li Qiang announced new support policies to soften the impact and highlighted long-term efforts to boost domestic demand and reduce reliance on foreign markets. In a public symposium, he stated, “We’ve made a full assessment and have been preparing for a variety of uncertainties,” as reported by the South China Morning Post.
Call for a united front against protectionism
Beijing has positioned itself as a defender of global trade norms, calling on countries to unite against US protectionism. An editorial in China Daily, cited by the BBC, declared, “Global unity can triumph over trade tyranny,” urging the European Union, Japan, South Korea and others to support multilateralism and free trade.
This message signals a shift in the global narrative. While the US once led the rules-based economic order, China now presents it as a disruptor. In contrast, Beijing is promoting partnership and cooperation, staying consistent with its long-standing support for multilateral diplomacy over direct confrontation.
Economic fallout
The economic impact of the tariff battle is already being felt across global markets and businesses. The South China Morning Post reported that the Baltic Dry Index, a key indicator of international shipping costs, dropped by more than 6 per cent after China’s announcement, while Brent crude fell below $60 per barrel, reflecting rising investor anxiety.
Chinese exporters are feeling the strain most. Many, including logistics firms and manufacturers, are operating on “razor-thin profit margins” that are being erased by the new tariffs. An exporter explained to BBC that tariffs above 35 per cent make it nearly impossible to export to the US or even Southeast Asia due to the ripple effects.
Some companies, such as the tableware maker Fuling, have tried to adapt by setting up factories in countries like Indonesia. However, the BBC reports that Trump’s trade policy has extended to those locations as well, with Indonesian exports now facing a 32 per cent US tariff—undermining such backup strategies.
Trade standstill
With tariffs now at extreme levels—104 per cent in the US and 84 per cent in China—many businesses are shifting focus from adapting to simply surviving.
Tim Waterer of KCM Trade told BBC that unless China successfully restructures its economy to rely more on domestic consumption—a long-standing goal that remains incomplete—the current course is not sustainable. This marks a turning point: China must either strengthen its internal market or continue facing economic vulnerability from outside pressures.
Beyond the economic fallout, the political tensions are just as important. Trump has not held direct talks with President Xi Jinping since returning to office. At the same time, China released a white paper stating its openness to “equal-footed dialogue,” while stressing that any negotiations must be mutual, not one-sided, according to the South China Morning Post.
Global implications
Even Elon Musk, a known Trump ally, has criticised the tariffs and economists warn the ripple effects could push not just the US but the entire world into recession, according to NBC News. If that happens, the impact will reach far beyond corporate losses, affecting food security, jobs, inflation and global development aid.
China’s call for a global alliance against Trump’s tariffs may not lead to an immediate coalition, but it reflects growing international frustration. Trump’s economic nationalism has shaken not just trade flows, but global trust. Although China’s own trade practices have faced criticism, Beijing is now trying to position itself as a defender of multilateralism and global economic stability.
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