China vows to 'fight to the end' as Trump escalates war with further 50 per cent tariffs amid global market turmoil
President Trump has refused to 'pause' tariffs despite chaos in global stock markets - as China vows to 'fight to the end' in response to the retaliatory measures.
Listen to this article
The Asian nation threatened to "resolutely take countermeasures to safeguard its own rights and interests" on Monday, in response to US President Donald Trump's threat of an additional 50% tariff on Chinese imports.
In a statement, China's Commerce Ministry labelled the US's use of "so-called 'reciprocal tariffs'" against China "completely groundless and is a typical unilateral bullying practice".
The ministry hinted more retaliatory tariffs are to be expected in the coming days.
It comes as Trump warned Americans not to be 'a Panican' - the US President's newly coined terminology referring to “a new party based on weak and stupid people” - an apparent reference to those panicking within the Republican Party.
The global market turmoil comes as Sir Keir Starmer is due to be questioned by senior MPs on Tuesday over the impact of US tariffs.
The FTSE 100, the index of the biggest companies listed on the London Stock Exchange, ticked up slightly on opening on Tuesday after several days of declines.
Read more: Baby girl makes history as first child in UK to be born from womb transplant
The Prime Minister is expected to hold a Cabinet meeting of his most senior ministers in Downing Street this morning, before heading to Parliament where he will appear before the Liaison Committee ahead of the Easter recess.
The noise over international tariffs comes hours after the US President met with Israeli Prime Minister Benjamin Netanyahu in the Oval Office- a meeting which saw President Trump labelled a true "friend of Israel" by the Israeli leader.
Netanyahu told Trump: "You actually do things that you say you do," adding: "People respect that enormously".
The meeting also saw Trump confirm the US will not be pausing tariffs, saying: "We're not looking at that".
Israel was one of the many countries to be slapped with Trump's "liberation day" tariffs, with the Middle Eastern nation facing levies of 17%.
Netanyahu said: "You actually do things that you say you do" and "People respect that enormously".
Trump confirmed the US will not be pausing tariffs, saying "We're not looking at that".
"The countermeasures China has taken are aimed at safeguarding its sovereignty, security and development interests, and maintaining the normal international trade order. They are completely legitimate," the ministry said.
"The US threat to escalate tariffs on China is a mistake on top of a mistake and once again exposes the blackmailing nature of the US.
"China will never accept this. If the US insists on its own way, China will fight to the end."
Mr Trump's threat, which he delivered on social media, came after China said it would retaliate against US tariffs announced last week.
"If China does not withdraw its 34% increase above their already long term trading abuses by tomorrow, April 8th, 2025, the United States will impose ADDITIONAL Tariffs on China of 50%, effective April 9th," he wrote on Truth Social.
"Additionally, all talks with China concerning their requested meetings with us will be terminated!"
If Mr Trump implements his plans, US tariffs on imports from China would reach a combined 104%.
The new taxes would be on top of the 20% tariffs announced as punishment for fentanyl trafficking and his separate 34% tariffs announced last week.
Not only could that increase prices for American consumers, it could give China an incentive to flood other countries with cheaper goods and seek deeper partnerships with other trading partners.
The Chinese Embassy in the US responded to Mr Trump's latest tariff threat by saying his bluster would not help him resolve any trade disputes.
"We have stressed more than once that pressuring or threatening China is not a right way to engage with us," said Liu Pengyu, the embassy spokesman.
"China will firmly safeguard its legitimate rights and interests."
The defiant stance to carry on with his trade plans comes as Trump faces growing pressure following his decision to slap tariffs on nearly all countries across the world.
The Israeli PM also said the country will "eliminate the trade deficit with the US".
"We're going to get fair deals with every country and if we don't they are not going to be able to participate with the US," Trump continued.
He said the US "has been ripped off by many countries over the years".
Regarding Trump's tariffs, the Israeli PM said: "We will eliminate the trade deficit with the US... We will do it very quickly and we think it is the right thing to do."
"Israel can serve as a model for many countries"
Netanyahu added: "I recognise the position of the United States."
"I'm a free trade champion and free trade has to be fair trade."
Whether Netanyahu's visit succeeds in bringing down or eliminating Israel's tariffs remains to be seen, but how it plays out could set the stage for how other world leaders try to address the new tariffs.
Speaking on the EU, Trump said: "It was formed to do damage to the US. The countries formed together to create a bit of a monopoly situation - a unified force against the US for trade.
"They have NATO and they took advantage of us dollar-wise and militarily."
He claimed the EU is "screwing us on trade".
"They don't take our cars. They don't take our agriculture products and yet they send millions of cars into the US," he continued.
"It's not going to be that way. It's not fair."
He asserted that trade with the EU must be "fair and reciprocal".
It comes as Trump threatened additional tariffs on China on Monday, raising fresh concerns that his drive to rebalance the global economy could lead to a trade war.
Trump's threat, which he delivered on social media, came after China said it would retaliate against US tariffs announced last week.
"If China does not withdraw its 34% increase above their already long term trading abuses by tomorrow, April 8th, 2025, the United States will impose ADDITIONAL Tariffs on China of 50%, effective April 9th," he wrote on Truth Social.
"Additionally, all talks with China concerning their requested meetings with us will be terminated!"
If Trump implements his plans, US tariffs on imports from China would reach a combined 104%.
The new taxes would be on top of the 20% tariffs announced as punishment for fentanyl trafficking and his separate 34% tariffs announced last week.
Not only could that increase prices for American consumers, it could give China an incentive to flood other countries with cheaper goods and seek deeper partnerships with other trading partners.