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Tensions between the world’s two largest economies surged again on Thursday, as both China and the United States implemented a fresh round of tariffs in their ongoing trade dispute. In response, China has urged Washington to seek a path of mutual cooperation and resolve differences through dialogue.
The latest escalation came after US President Donald Trump announced a steep increase in tariffs on Chinese goods — raising the rate from 104% to 125%. In retaliation, Beijing imposed an 84% levy on a broad range of American imports, effective the same day.
While global markets initially wavered, they rebounded sharply following Trump’s unexpected decision to pause tariff hikes for nearly all other countries for a 90-day window. Stocks across Wall Street, Asia, and Europe rallied, offering brief relief amid rising trade tensions.
China Urges Cooperation, Warns of Global Impact
China’s Ministry of Commerce expressed concern over the growing trade friction, warning that the tariffs could “severely impact” the global economy. Speaking at a press briefing, spokesperson He Yongqian emphasized Beijing’s openness to communication.
“We hope the US will meet China halfway and, based on the principles of mutual respect, peaceful coexistence, and win-win cooperation, properly resolve differences through dialogue and consultation,” she said.
The Ministry of Foreign Affairs echoed similar sentiments, stating the tariff escalation went “against the will of the international community.”
Trump Doubles Down on Strategy
Despite the backlash, President Trump remained firm in his stance, asserting that fair trade deals were imminent.
“A deal’s going to be made with China. A deal’s going to be made with every one of them,” Trump said at the White House, while criticizing Chinese leaders for not yet offering a resolution.
He later took to his Truth Social account, expressing optimism over the market rebound and insisting the US was in a strong position to negotiate better terms.
“What a day, but more great days coming!!!” he wrote, describing the tariff pause as a strategic move.
Peter Navarro, one of Trump’s senior trade advisors, hailed the day as a landmark in American trade history, claiming it put the US in a “beautiful position” to negotiate.
The European Union welcomed Trump’s pause as a “positive step” towards global economic stability. Meanwhile, Japan expressed cautious approval but continued to press for the removal of levies on its steel and automotive sectors.
Southeast Asian nations refrained from retaliatory measures, signaling a willingness to engage in dialogue. Vietnam, in particular, announced it had initiated talks with Washington on a reciprocal trade agreement.
The S&P 500 closed 9.5% higher, buoyed by the tariff reprieve. Markets in Tokyo, Hong Kong, Singapore, and Shanghai all posted significant gains, reflecting investor relief.
However, concerns remain. Analysts warn that without a resolution between Washington and Beijing, global supply chains and economic recovery could face significant disruptions. Reports from Bloomberg suggest that China’s top leadership is preparing additional economic stimulus to cushion the impact of the trade war on its already struggling economy.
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