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Trade War: Will China Escalate Against Trump’s Tariffs?

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Trade War: Will China Escalate Against Trump’s Tariffs?

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In response to President Donald Trump’s latest tariff hikes, China has signaled possible countermeasures to protect its economic interests. On April 2, 2025, Trump announced a 10% baseline tariff on all imports, with steeper increases targeting Chinese goods.

China’s Ministry of Commerce has urged the U.S. to revoke these tariffs and warned of necessary retaliatory actions. In a strategic move, China has restricted approvals for outbound investments in U.S. assets and imposed up to 15% tariffs on American agricultural exports. Additionally, export controls on certain U.S. companies have been tightened.

President Xi Jinping has also engaged with global business leaders, advocating against tariffs and positioning China as a defender of free trade. With economic and diplomatic strategies in play, further retaliation from Beijing is expected, intensifying the trade war’s uncertainty.