China vows strong resistance as Trump threatens 50 percent tariff

China has firmly declared it will “fight to the end” in response to a new 50 percent tariff proposed by U.S. President Donald Trump, escalating an already intense trade conflict that has shaken global financial markets and triggered fears of an international recession.

Despite recent market turmoil, Trump has shown no signs of softening his aggressive stance on trade. Instead, he has insisted on continuing his tariff-driven approach. Beijing, a top economic competitor and major trading partner of Washington, hit back with its own retaliatory tariffs—34 percent on U.S. products, effective Thursday—signaling a deepening standoff between the world’s two largest economies.

Trump warned that if China continued to retaliate, he would impose further tariffs that could raise total duties on Chinese imports to 104 percent. "I respect China, but they can't continue this behavior," he said at the White House. “We’ve got one shot at this, and I’m proud to take it.”

China responded swiftly, criticizing the U.S. actions as "blackmail" and promising further countermeasures if Washington proceeded with additional tariffs. A spokesperson from China’s commerce ministry stated, “If the U.S. persists, we will fight to the very end.”

Tensions increased as China’s foreign ministry condemned comments made by U.S. Vice President JD Vance, calling his remarks about American debt to “Chinese peasants” ignorant and offensive. The ministry urged the U.S. to approach negotiations with "equality, respect, and mutual benefit" rather than coercion.

The trade war has caused widespread financial disruption. A 10 percent baseline tariff on U.S. imports began on Saturday, and from Wednesday, tariffs as high as 34 percent on Chinese goods and 20 percent on European Union products are being implemented.

Markets have reacted sharply. On Monday, Hong Kong’s Hang Seng Index suffered its worst plunge since the 1997 Asian financial crisis, dropping 13.2 percent before modest recovery on Tuesday. Other Southeast Asian markets, including Thailand and Vietnam, also declined as they reopened after public holidays. In Singapore, Prime Minister Lawrence Wong criticized the U.S. move as damaging to international friendships.

Trump reaffirmed on Monday that he would not pause the implementation of tariffs, canceled all planned meetings with China, yet remained open to dialogue with other countries willing to negotiate. Meanwhile, China’s central bank took steps to calm markets by backing a sovereign wealth fund’s efforts to stabilize investments.

In Japan, stocks surged after Treasury Secretary Scott Bessent indicated Tokyo would be prioritized in trade talks. “Many countries are seeking negotiations,” Bessent said, suggesting that through diplomacy, tariff levels might eventually be lowered.

While meeting with Israeli Prime Minister Benjamin Netanyahu, Trump stated that both permanent tariffs and negotiations were possible, depending on broader trade needs. Meanwhile, EU trade ministers met in Luxembourg to discuss a counter-response, with some pushing for digital taxes on American tech firms. French Trade Minister Laurent Saint-Martin urged the bloc to fully utilize its trade tools, even aggressively if needed.

Despite the market chaos, Trump continued to rally Americans, urging, “Don’t be weak! Don’t be stupid!” He remains confident that tariffs will push foreign companies to bring manufacturing back to the U.S.—a belief many economists dispute.

JPMorgan Chase CEO Jamie Dimon warned that inflation could rise as a result, noting that while a recession isn’t certain, economic growth would likely slow under the current trade conditions.