China rejects US ‘blackmail’ as global trade tensions escalate

China has rejected what it called “blackmail” by the US, as the global trade war triggered by President Donald Trump’s tariffs showed no signs of easing on Tuesday, despite calmer stock markets.

Beijing’s remarks followed Trump’s threat to increase tariffs on US imports from China to over 100 per cent on Wednesday. The move came in response to China’s decision to impose reciprocal duties following Trump’s earlier tariffs.

“The US side’s threat to escalate tariffs against China is a mistake on top of a mistake, once again exposing the American side’s blackmailing nature,” China’s commerce ministry said. “If the US insists on having its way, China will fight to the end.”

Chinese manufacturers, producing everything from tableware to flooring, are reporting profit warnings, considering relocating production overseas, and negotiating prices with clients as they struggle with the impact of the tariffs.

The European Union also proposed counter-tariffs against Trump’s measures, which have affected dozens of countries, shaken global financial markets, and raised fears of a looming recession.

After sharp declines, stock markets began to recover. Japan’s Nikkei Index rose six per cent on Tuesday, bouncing back from a 1.5-year low, after Trump and Japanese Prime Minister Shigeru Ishiba agreed to launch trade talks.

China’s blue-chip stocks climbed one per cent, recovering part of Monday’s seven per cent drop. Hong Kong’s Hang Seng Index jumped two per cent after suffering its worst trading day since 1997, which the city’s leader blamed on “ruthless” tariffs.

Attribution: Amwal Al Ghad English
Subediting: M. S. Salama