‘Mistake on top of mistake’: China responds to Trump’s threats, vowing to ‘fight to the end’

Washington: Beijing has responded to Donald Trump’s threats of more tariffs with one of its own, calling the US trade strategy of inflicting higher duties on other countries blackmail and vowing to “fight to the end”.

The US president earlier said he would whack an additional 50 per cent levy on Chinese imports – taking the stacked total to more than 100 per cent – from April 9 unless Beijing reversed its decision to match his 34 per cent tariff from last week with equivalent import duties on US products.

Escalation: Donald Trump’s threats angered Xi Jinping’s Ministry of Commerce.Credit: AP

“Additionally, all talks with China concerning their requested meetings with us will be terminated,” Trump said. “Negotiations with other countries, which have also requested meetings, will begin taking place immediately.”

Beijing immediately responded, threatening on Tuesday to “resolutely take countermeasures to safeguard its own rights and interests”.

A Chinese Commerce Ministry statement said the US’s imposition of “so-called ‘reciprocal tariffs’” on China was “completely groundless and is a typical unilateral bullying practice”.

“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,” it said.

President Donald Trump upon arrival at the White House following his weekend in Florida.Credit: nna\KCampbell

“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.”

The US-China trade war escalated as Trump gave his strongest signal yet that he would lower tariffs on countries that agreed to remove their own trade barriers.

US politicians also continued to single out Australian beef as a key trade grievance, in comments that suggest biosecurity concerns will need to be on the table if Canberra is to strike a deal in future talks.

Choppy financial markets hung on every development and were briefly up in US morning trade after a rumour that the Trump administration would implement a 90-day pause on the controversial tariff program that has sent global stock markets into a rout not seen since the COVID-19 pandemic.

The White House quickly scotched the rumour as “fake news” and Trump later said he was not considering a pause. But he indicated a greater willingness to negotiate with foreign leaders to start winding back the tariff blitz, potentially beginning with Israel.

After meeting with Trump on Monday (Tuesday AEST) at the White House, Israeli Prime Minister Benjamin Netanyahu said he would end the US’s trade deficit with Israel. “We are going to eliminate the tariffs, and rapidly,” Netanyahu said, promising results, not words.

White House National Economic Council director Kevin Hassett said more than 50 countries had asked to begin trade talks. Trump said he spoke to Japanese Prime Minister Shigeru Ishiba, who would send a negotiating team to the US.

“We have many, many countries that are coming to negotiate,” Trump said in the Oval Office. “They’ll be fair deals … We’re gonna have one shot at this. No other president is going to do this.”

Amid the market whiplash, Trump also implored investors not to panic and urged nervous Republicans to be patient, posting on his Truth Social platform: “Don’t be a PANICAN (A new party based on Weak and Stupid people!). Be Strong, Courageous, and Patient, and GREATNESS will be the result!”

He also wrote: “It all has to change, but especially with CHINA!!!”

Japan, a key US ally in the Pacific and top trading partner, was whacked with a 24 per cent tariff. Ishiba said he told Trump this was disappointing as Japan “has been the biggest investor in the United States for five straight years and the tariff policies could hurt Japanese companies’ investment capabilities”.

Meanwhile, European Commission President Ursula von der Leyen said Europe was ready to negotiate and had already offered “zero-for-zero tariffs” arrangement on industrial goods. “We’re always ready for a good deal. But we’re also prepared to respond with countermeasures,” she said.

To that end, the commission proposed counter-tariffs of 25 per cent on certain US goods, including soybeans, nuts and sausages, though other potential items such as bourbon whiskey were left off the list, according to a document seen by Reuters.

The 27-member bloc is struggling with tariffs on cars and metals already in place, and faces a 20 per cent tariff on other products on Wednesday. Trump has also threatened to slap tariffs on EU alcoholic drinks.

On Fox News, Republican Senator John Barrasso from the cattle state of Wyoming said ranchers were thanking the president for taking action on their long-standing trade grievances against countries such as Australia and Thailand.

“Australia has sold $US29 billion ($48 billion) worth of beef in the United States, and we haven’t been able to sell one hamburger in Australia because of barriers,” Barrasso said. “You look at these numbers, and the ranchers of Wyoming are saying: thank you, Mr President, it is about time.”

Trump broadcast those remarks from his Truth Social account.

Australia does not strictly ban US beef. Since 2019, it can be imported into Australia as long as it is verifiably from cattle born, raised and slaughtered in the US. But the US integrates beef sourced from Mexico or Canada, and wants that included in the deal.

For years, Australian officials have argued that the US should implement a certification system that would allow explicitly American beef into Australia.

Prime Minister Anthony Albanese has repeatedly said Australia will not compromise on biosecurity, most recently at a weekend rally in Brisbane. Coalition home affairs spokesman James Paterson also said Australia should stand firm.

“We really think it is a self-harming initiative by the United States to put a tariff on Australian high-quality beef,” he told Sky News.

In a note to shareholders on Monday, JPMorgan Chase chief executive Jamie Dimon warned Trump’s tariff agenda would add to a raft of inflationary pressures and increase prices for consumers.

“Whether or not the menu of tariffs causes a recession remains in question, but it will slow down growth,” he wrote. “The quicker this issue is resolved, the better because some of the negative effects increase cumulatively over time and would be hard to reverse.”

Dimon said he hoped negotiations would deliver benefits to the US in the long term. “In the short run, I see this as one large additional straw on the camel’s back ... my most serious concern is how this will affect America’s long-term economic alliances.”

With AP, Reuters

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